London property market – Trends and opportunities for 2025

London’s property market is gaining momentum in 2025. After a slightly cautious 2023, investors and property sellers seem confident about tapping the London real estate market’s potential in 2025. Recent Rightmove reports suggest that the asking price has started to see a moderate 0.3% (+£1,199) (1) hike starting October 2024.

Rising buyer interest

One of this year’s most promising trends is the increment in buyer activity. London’s real estate companies report a 17% (1) year-on-year rise in property inquiries. They also suggest a 12% rise in housing stock availability, making this the biggest surge in a decade. The two main factors contributing to this demand are expected interest rate cuts and better wages.

For London property sellers, this demand translates into an opportunity to step foot into this market and interact with a growing pool of overseas and domestic buyers. The property momentum is shifting in a positive direction, with mortgage approvals and transactions in London touching their highest levels since 2021.

Stamp duty on second properties

The recent budget cuts have made Capital Gains Tax (CGT) rates on residential properties stand at 18% and 24% (2) despite buzz about rate increments. Investors buying additional properties for buy-to-let or vacation homes currently pay 3% to 5% stamp duty. First-time buyers are not exempt from this stamp duty requirement (3).

Lowering mortgage rates

The average rate for a 5-year (4), 75% LTV mortgage is currently 4.3% — down from 5.5% a year ago, making it the lowest rate in 15 months, according to Zoopla. The UK housing market marked a 10% increase in net sales, boosting buyer sentiment and providing much-needed relief for those looking to enter the capital’s real estate market.

Global investors choosing London

London continues to stand as a leading investment hub for domestic and international buyers. In the past few months, Benham and Reeves organised a few property events in Hong Kong — all of which attracted an excellent turnout.

It’s 2025 and Hong Kong buyers continue to London’s property scene, with total ownership rising by 5.7% (5) year-on-year. This data makes Hong Kong nationals one of the top three overseas buyer groups in the capital city. The launching of the British National (Overseas) Visa scheme (2021) further helped this demand gain momentum.

Success at Jade Wharf Showcase

On November 9-10, Benham and Reeves Hong Kong took the opportunity to introduce Jade Wharf at London Dock. We drew excellent responses from savvy investors looking to make the most of the London property market’s stability. This event helped underscore London’s appeal to investors — especially those eager to diversify into global property markets.

Twickenham Green selling fast

Another event featured new offerings by London Square in Twickenham, a charming, family-friendly area within Richmond upon Thames. With its three-bedroom apartments and mews houses near the River Crane, Twickenham Green captivated buyers’ attention for its accessibility to Waterloo and Central London. This development is an ideal investment pick for Hong Kong investors interested in the quintessential British lifestyle and solid returns.

Royal Gateway – An ideal investment opportunity

The end of October focused on Royal Gateway, Ealing, West London. Set in a regeneration zone backed by a £26 billion investment, this Barratt London development is gaining traction for its quick access to the Elizabeth Line and the upcoming High-Speed Rail. For families, this development’s prime location is appealing for its proximity to Imperial College London and King’s College.

London Waterside – B&R Hong Kong’s latest triumph

Our latest November exhibition highlighted the prestigious London Waterside Collection by St. George, a part of the Berkeley Group. With prices starting at £390,000* and rental yields going up to 6%*, this prime waterside development collection is an excellent opportunity for an incredible blend of lifestyle and financial returns.

Overseas demand for UAE developments

Benham and Reeves is showcasing luxurious Dubai properties to overseas investors, including buyers from Hong Kong, by renowned UAE developer Aldar in Dubai, Abu Dhabi and Ras Al Khaimah.

Indians exploring UAE properties

Our team in India actively engages with investors looking for opportunities beyond London. The Delhi team hosted an event in October to showcase popular UAE developments. The Mumbai team is preparing to unveil exclusive beachfront Dubai properties to Indian investors, offering guidance on maximising income in the UAE’s tax-free environment.

Dubai buyers preview TwelveTrees Park

In Dubai, directors Anita Mehra and Marc von Grundherr held one-on-one consultations to introduce clients to TwelveTrees Park, Berkeley’s master-planned development in London’s Zone 2. This development offers green spaces, commercial areas and excellent connectivity to Stratford, Canary Wharf and the City of London.

Singapore buyers’ interest in Berkeley’s properties

West End Gate and Oval Village, two Berkeley Group developments, are rapidly gaining popularity among Singapore investors. Our Singapore office recently showcased these modern Zone 1 and Zone 2 developments, starting from £590,000* and feature premium amenities, convenient transport links and up to 5% rental yields*.

South African investors interested in Dubai’s high-rise living

Benham and Reeves introduced South African nationals to one of Dubai’s Business Bay’s leading luxury developments, with a skyscraper over 100 floors, furnished apartments and penthouses. With prices starting at AED 1.27 million, this development is attracting buyers who are eager to tap into the UAE’s growing real estate market.

If required, our agents are set to assist investors with expert insights into Dubai’s Golden Visa scheme and other investor-friendly policies and strategies.

Rental market’s performance

London’s rental market is performing at a steady pace, with the average rent in the capital currently at £2,694 (6) — a 2.5% increase. Rental inquiries per property are nearly double what they were in 2019. Private rents increased by 8.4% to £1,295, with the highest rent growth recorded in August at 9.6% (7).

If you are looking to buy, sell or let your property in London, the Benham and Reeves team is here to assist with every aspect of your property journey. Our Hong Kong office was established in 1995 and since then, we have offered full letting and management services to thousands of investors. Our multilingual staff coordinates with the London team and finds you the best London property.

Sources

1. Rightmove
2. Gov.uk
3. Infinity Financial Advice
4. Zoopla
5. Benham and Reeves
6. Mortgage Strategy
7. ONS

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