The London housing market appears to be entering a resurgence since 2024 began. This marks a significant shift for the capital city which has been lagging behind the rest of the nation since hitting peak expensiveness nearly 8 years ago. But what has caused this sudden change in London and is it expected to last?
Why are we seeing a rebound?
London was behind the rest of the UK in terms of house price inflation and sales for several years, but has entered into a second wind of the ‘Boris Bounce’ we saw in 2020. Following Boris Johnson’s election, there was a boom in the housing market fuelled by the promise of Brexit, a surge which quickly subsided with the nationwide lockdown only a few months later.
The return to normality post-pandemic is a contributing factor, with buyers finally ready to make commitments to moving after readjustment. Working patterns have also regularised, providing more stability for buyers, and a willingness to invest.
People looking to buy property were biding their time throughout the lockdowns and post-Covid period, leading to a sudden surge in demand. This is most apparent for family homes between the £500k and £1m bracket, with families finally prepared to commit to finding property.
Another factor to consider is the increase in earnings for everyone – including the increase in the minimum wages – which are growing at a faster rate than housing prices. This will gradually improve affordability but should not cause housing prices to spike, as higher prices would only deter buyers in a market becoming even more competitive.
When you consider that one in five sellers are still having to lower their prices to secure sales, the market is definitely starting to favour buyers, an aspect more and more buyers are starting to realise.
Buyers are also benefiting from the housing market rebound by seeking conveyancing solicitors London, such as the services found at https://www.samconveyancing.co.uk/Conveyancing-Solicitors/conveyancing-solicitors-london, for advice on mortgage agreements and avoiding unfair treatment.
Conveyancing services have helped buyers to maximise their benefits and avoid the potential risks of rushing into the housing market. The increase in online services throughout lockdown and the post-pandemic period allowed more buyers to seek counsel before finally committing in this sudden surge.
Will this trend continue?
London’s population has only increased since the 75,000 slump in size during the pandemic. As people become used to higher interest rates coinciding with their pay increases, and sellers become more competitive, the London housing market rebound is showing no signs of slowing down.
