Hyde Park market focus, Autumn 2023
Activity in the London sales market has eased this year compared to a very busy 2022, as rising interest rates and a more uncertain economic outlook affect the whole UK housing market.
Even during the busy periods last year, the upward pressure on prime London prices was muted as the higher capital values of homes left less headroom for price growth.
Since then, rising inflation and rising base rates are also affecting the market, as potential buyers dependent on mortgages have had to review which homes are within budget as affordability stress tests become more onerous. However, in the prime London markets, not all buyers are dependent on mortgages.
Agents report that cash buyers are active in the market – including those from overseas who benefitfrom the relative weakness of the pound against the dollar.
The sales market is price-sensitive. Well-priced homes are still attracting attention and, in some cases, competitive bidding. But demand remains relatively muted, which has been enough to take the upward pressure out of the market, with price growth slowing in most areas and falling in central London.
Meanwhile, the lettings market remains strong. Tenant demand continues to rise, especially for properties at sub-£1500 a week, albeit rental growth this year is unlikely to be as high as the last 12 months.
What our agents say
Supply within Hyde Park sales market remains strong. Still, buyer demand is low, likely due to a large proportion of the property available not being priced in line with where the market is currently transacting. Any existing or new sellers who want to stand a realistic chance of agreeing sales in the next six weeks should seriously consider how they price their property. The properties that have seen strong demand and successfully gone under offer recently have been priced correctly.
The Hyde Park rental market continues to see demand outstrip supply, and rental prices are at a historic high for the location. Over the last quarter, we have let much of the property we have brought to market and have successfully agreed several sales between £700k-£11m.
If you’re thinking of selling or letting your home, we’d love to help. Book a free, no obligation valuation with our sales & lettings experts today.
Hyde Park
23 Albion Street, London, W2 2AS
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Monday to Friday: 8:30am – 6:00pm
Saturday: 10:00am – 4:00pm
-1%
average decline in prime central London prices, year to July
+10.3%
annual rise in number of properties for sale, W2
+6.7%
annual rise in central London prime rents, year to July
+53%
total rise in rental transactions in W2 from June to September 2023
v
buyer demand dipped in August vs June 2023
Sources: Land Registry, Gov.UK, Lonres, Cluttons, Rightmove, Zoopla
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