Market Index

Demand for rental homes in London 'remains high and I do not see a great glut of stock on the horizon,' says Sarah Tonkinson of Foxtons.

The latest RICS data on residential property deals, demand, new instructions and prices all point to a continued market slowdown.

The average UK property price fell by 0.3% in November 2022, according to the official House Price Index, but London saw a 0.1% rise.

Savills expects prime London rental growth to calm from its double-digit run to +5.0% over 2023 and +3.0% by the end of 2024. The prime commuter belt is set for an even sharper slowdown.

Property portal notes 'tentative sign of stability' as asking price rise in January after two negative months.

'2022 has been a record-breaking year for rental growth,' says Hamptons. 'But even so, rents have failed to keep pace with wider inflation, and indeed landlords’ rising costs.'

'The pandemic-inspired property boom is being brought well and truly back down to earth,' says GetAgent after assessing the proportion of homes listed for sale that have already found a buyer.

Fewer house purchase mortgages were approved in November 2022, as interest rates climbed.

Knight Frank brought in 50% more Scottish country house sales instructions in November compared the five-year average.

Prime Central London's property market is looking resilient in the face of the economic downturn, says Savills.

Knight Frank saw a sharp drop in offers bing made on prime London properties towards the end of 2022 - but offers accepted and exchanges were well up on previous years.

Rental supply and demand remain very mismatched in the capital - but Knight Frank suggests that 'the UK property market may finally begin the process of self-correction' later this year.