London property prices dip, but smart buyers make a move

After a hectic June, the UK housing market saw a reset in the month of July. Rightmove recorded a 1.2% dip in average asking prices, with London marking the most significant hit, down to 1.5% overall. Inner London prices dipped by 2.1% and the average price in the capital city came down to £684,689, once again, below the £700K mark.

This may look like a slowdown to some; however, savvy investors are making the most of this rare opportunity in London’s competitive market.

More supply leading to better deals

The number of homes available for sale in the market reached its highest level in the last ten years. Sellers are becoming more flexible and price cuts are luring in serious buyers. Before the market turns again, smart money is rapidly moving within it thanks to increased choice and more competitive pricing.

Easing mortgage rates

Borrowing rates are getting cheaper, with the average two-year fixed mortgage now at 4.53%, down from 5.34% last year. This leads to an approximate saving of £150/month on average mortgage rates.

Mortgage rates might undergo two further rate cuts, as per reports, creating a potential window for better financing and solid returns.

Hike in home values over the past five years

Despite the short-term dip, home values across the UK have risen by 20% since 2020, pointing towards a £55,800 gain. Zoopla’s latest data further states that 80% of homes have added £60,000+ in value. This highlights London’s property strength as a long-term asset, despite seasonal corrections.

The Broadley gaining rapid traction in Hong Kong

Benham and Reeves Hong Kong recently launched the highly anticipated Broadley, a new boutique development in Marylebone, one of London’s most established and high-in-demand residential neighbourhoods. This development gained rapid appeal thanks to its central location. Commuters at The Broadley are just a few minutes from three Zone 1 railway stations, in addition to being in proximity to seven Tube lines.

Families and professionals expressed interest in this development, as it’s near well-regarded educational institutions, including UCL, LSE and Imperial College and some of London’s buzzing business hubs.

Rising rental yields

Rental demand continues to showcase resilience, especially in London. Average UK rents are now at £1,283 per month. On the other hand, rental growth touched £400 in some neighbourhoods. These figures outpace the rise in mortgage payments, now touching £1,154/month.

This rise clearly indicates that landlords are able to benefit from higher returns.

Rental growth in London over the course of the past decade (2015-2025) remains stable. From 2015 to now, the average rent in London has risen by 39.2% from £1,616 to £2,249. After adjusting for inflation, this points towards only a 0.7% real increase or £15 per month.

Why investors are looking now

For discerning property investors in Hong Kong looking to expand their London portfolio, now is a crucial time. Lower prices, improved financing options and a secure, stable rental market make London one of the leading property choices globally.

If you are looking for the best real estate investment opportunities in London, get in touch with our experienced team and gain exclusive access to new launches and off-market property deals. You also get complete support from us, right from purchasing a property to tenancy management.

Disclaimer: To buy or not to buy non-local off-plan properties? Assess the risks before you buy! 境外樓花買唔買？計過風險先好買！*Prices and details are correct at the time of going to press. Expected rental yield per annum, not guaranteed. ^Travel times are an approximation only, sourced from Transport for London and Google Maps, and may reference driving, public transport, cycling and/or walking times. Planning permission no.: 21/08160/COOUT, and 24/05251/NMA24/05253/MOD106, 25/00685/NMA & 25/00985/MOD106granted by Westminster City Council. Lease Term: 999. Purchasers are acquiring an interest in the land, the building to be erected thereon and/ or a right to use and occupy the properties in the building. Estimated Completion Date: From Q2 to Q3 2030. Computer-generated images for illustrative purposes only. Purchasing uncompleted properties situated outside Hong Kong is complicated and contains risk. You should review all relevant information and documents carefully before making a purchase decision. If in doubt, please seek independent professional advice before making a purchase decision. The non-licensed staff engage in estate agency work exclusively in relation to properties outside Hong Kong and they are not licensed to deal with any property situated in Hong Kong. Property reference number: BRHK-UK250601. Last update: 18th Aug 2024. Benham and Reeves (Hong Kong) Limited License No. C-092169.