London property market remains resilient as investors’ confidence grows

Despite the end of temporary stamp duty incentives, London’s prime property market continues to show endurance. Consistent buyer activity, rising property prices and a positive economic backdrop highlight the capital city’s appeal amongst overseas investors — especially those in Asia seeking stability and long-term returns.

Capital values set a new benchmark

According to a recent Rightmove report, the average asking price for UK property grew by 1.4% in April — pushing the national average to £377,182. London stands at the top of the market, with average asking prices touching £699,200 — a solid 85% premium over the national average.

The city recorded a month-on-month growth rate of 0.5% and annual growth stood at 0.4%.
The average time to secure a buyer in London also shortened from 69 to 65 days, showcasing demand and confidence amongst discerning investors.

Buyer activity holds strong

The London property market continues to perform well, overturning the expected slowdown in transactions post the end of the Stamp Duty Land Tax (SDLT) incentive. Investors are still proceeding with purchases and the rate of withdrawn or collapsed deals remains stable.

The lined-up transactions are clearing up, too, with almost 24,000 fewer deals awaiting completion. April marked a 5% increase in buyer inquiries, compared to the previous year and recorded a 4% rise in new properties introduced to London’s competitive market.

Strengthening UK economic growth

Recent UK economic data promotes a positive picture for overseas buyers. The economy grew by 0.5% in February — driven by gains in the services sector. March marked a dip in inflation at 2.6% – close to the Bank of England’s 2% target. Combine these numbers with the expected interest rate cut by May and affordability within London’s property market could improve.

Investing in London’s future

The Mayor of London has promised £27 million to encourage training programmes in high-growth areas, such as digital and green industries. This long-term investment plan will attract skilled talent, boost productivity and meet demand for rental homes — a lucrative offering for landlords.

Growing interest in London developments from Hong Kong

At Benham and Reeves’ recent property event in Hong Kong, savvy investors expressed strong interest in London and Greater London projects –

• The final phase of Bankside Gardens in Reading, by Berkeley, stood out for its appeal to Japanese corporate tenants and proximity to key London business hubs
• Another development that pulled in interest was The Lanes by Barratt London. This development is a low-density, family-friendly offering in South West London’s Springfield Village. Investors are drawn to The Lanes for its expansive green spaces and exceptional convenience.

Reading Riverworks’ immediate sales in Malaysia

The Malaysia showcase marked notable success — our Kuala Lumpur office hosted an exclusive preview for Reading Riverworks, resulting in several on-the-spot purchases from Malaysian buyers.

This riverside development is just minutes from Reading Station. Its strong rental potential and connectivity attracted immediate interest.

India showcase highlights

Benham and Reeves India showcased London and UAE developments at an exclusive event. Projects by Emaar, Binghatti and Sobha and London developments such as Bermondsey Place, The Green Quarter, Hayes Village and Fulton & Fifth were a part of this showcase.

These propositions appealed to those seeking opportunities in growth-led regeneration areas and well-connected London neighbourhoods.

UAE property showcase in London, May 2025

Our White City, London branch will host a UAE property event in May. This event will be led by regional experts and investors will have the chance to explore leading development options in Dubai, Abu Dhabi and Ras Al Khaimah. It will also offer insights into the best financing options and Golden Visa eligibility.

London rents continue to rise

Rents UK-wide rose 7.7% over the past year, marking a robust rental market. London topped the list with rents averaging £2,243 per month — up 9.1% from last year. Certain areas like Kensington and Chelsea recorded rental numbers exceeding £3,600 – thanks to continuous demand for premium housing.

Partner with Benham and Reeves Hong Kong

Benham and Reeves is equipped with 65 years of experience in the London property market and a solid global network. We have 21 branches across London and 14 overseas offices — including an established Hong Kong office.

Since 1995, experts at the Hong Kong office have assisted numerous local investors, landlords, buyers and sellers with multiple aspects of London real estate. Fluent in English, Cantonese, Mandarin and Tagalog, the team offers complete assistance in identifying the right property, securing robust yields and building promising and long-term value.

Our services include –

• Tenant sourcing & screening
• Market rental appraisals
• In-house rent collection & maintenance
• Ongoing property management
• Legal & mortgage references
• Real-time updates & reporting through our London team

Get in touch with our Hong Kong team today to explore your next London investment.