2024 has been quite the year for London's property market. As we wrap up December, we’re seeing plenty of reasons to be optimistic about what's ahead. Here's our take on what's happened and what it means for you.
Key points (click to learn more):
• Mortgage rates are easing, but lenders aren't waiting around
• Buyer sentiment in a much better place
• Stamp duty ending 1 April
• Foxtons Sales shows strength in the London market
• The New Year is going to be busy
The numbers that matter
If you're wondering about house prices (who isn't?), here's some good news: the Halifax House Price Index shows properties are worth 4.8% more than this time last year, which is the strongest level seen since November 2022.
Lenders are getting creative:
Own New Rate Reducer
99% mortgage for first-time buyers
But the real story of 2024 has been the mortgage market.
Rates have started to fall as the base rate improved. In August 2024, it fell to 5%, and in November to 4.75%. However, affordability is still the key issue, and will remain that way in 2025.
So, we've been genuinely impressed by how lenders have stepped up their game. They've gotten creative with their products, making homeownership more accessible for first-time buyers and ambitious movers. This innovation will be crucial as we head into 2025.
A new market reality
Remember the ultra-low pandemic-era base rate? Five years ago, it reached a historic 0.1%, which is, frankly, hard to imagine these days.
When rates began to rise, there was a transition period. It was a bit rocky while buyers and sellers faced the market with different price expectations. But by now, we are all well-adjusted to the new normal. Buyers, sellers, agents, lenders – everyone's expectations are now much better aligned.
Why does that matter? Well, with inflation cooling and wages growing,* we're seeing improved sentiment across the market. That can lead to banks being less risk adverse with mortgage applications as well as a more active market, with the opportunities to achieve your property goals.
*Source: Wage growth - ONS
Stamp Duty: the clock is ticking
If you've been thinking about making a move, here's something you need to keep in mind: the current Stamp Duty relief that buyers have enjoyed through 2024 will end on 1 April 2025. Labour confirmed this in the Autumn Budget.
This will create a clear deadline for savvy buyers and sellers to act - a lot of competition for very good reason.
London's coming back strong
London's never lost its appeal – let's be clear about that. But we're seeing renewed energy with the return to offices and a fresh wave of international buyers showing interest. And speaking of strength...
Foxtons leading the way
The last couple of years have been challenging for London. We all remember the Truss mini-budget (though some of us might prefer not to) and, for most, 2023 was largely about weathering the storm of poor market sentiment and rising inflation. For us, it was all about getting it done.
Foxtons sales team turned those challenges into opportunities. Whilst London saw some of its lowest sales volumes in recent history in 2023, we became London's number 1 estate agency brand*. In 2024’s recovering, growing market, we've pushed even further ahead. We're heading into 2025 stronger than ever, ready to get it done for our customers.
*Source: TwentyCI data, 2023 v 2022 market share and market share growth of new instructions at a brand level.
Looking Ahead: Why Early 2025 Could Be Your Moment
Here's an insider tip: the start of the year is always buzzing in property. People come back from Christmas with fresh motivation (and perhaps a few hours spent scrolling property websites after Christmas lunch). Our website traffic for property for sale and property to rent typically spikes around New Year's.
Especially with standard Stamp Duty rates returning in April, we're expecting an extremely lively first quarter. First-time buyers will be keen to take advantage of the current relief while they still can. Home movers will be doing their sums and realising the savings they could make by acting quickly. And investors? They'll be strategising to expand their portfolios before the higher rates kick in.
So, if you're thinking of selling or buying, don't wait. The early bird really does catch the worm in the property market, and with rates expected to fall and buyer sentiment on the rise, early 2025 could be your perfect moment to make a move.
Ready to get started?
Whether you're looking to sell or find your next home, we're here to help you get it done:
Source: This article on the 2024 property sales market was reviewed and edited by Foxtons Sales department; the experts on London property. For personalized advice tailored to your property goals, book a valuation with a Foxtons Valuer.
