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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-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
A new seasonal trend?
The housing market is traditionally quite seasonal, with busy periods in Spring, Autumn and the New Year, as buyers and movers use markers of the year as a goal to settle into a new home. During the pandemic, seasonality disappeared from the market amid two years of constant activity. But in some markets, including that in Hyde Park, the market is now resuming more normal patterns. This can be seen by the decline in buyers during the summer. While this has happened across many markets due to a more challenging economic outlook, this was particularly noticeable in central London. However, we can see evidence of pent-up demand now returning to the market, and the return of international buyers, which will mark a busier period in October and November.
In the event that you already have a contract with another estate agent for the marketing of your property, you are advised to consult the terms of the agreement with that estate agent as you could be liable for double commission. The information provided in this flyer is the sole property of Cluttons LLP and provides basic information and not legal advice. It must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Cluttons LLP. The information contained in this flyer has been obtained from sources generally regarded to be reliable, and we believe the data to be correct at the time of writing. However, no representation is made, or warranty given, in respect of the accuracy of this information. Cluttons LLP does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.
