Wapping & Limehouse 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 benefit from 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

Despite the Tower Hamlets borough seeing average price uplifts, we’re experiencing price falls across Wapping and Limehouse. This is primarily due to factors such as global economic uncertainty, rising interest rates and pressures within the job market, especially in the professional and financial services, which impact the housing market and these particular geographies.

In the face of challenging market conditions over the last year, we have remained active in the area and we have a growing local and international database of buyers and tenants looking for property in your area. With more property likely to come to the London sales market in the first half of 2024, we envisage that it will put downward pressure on pricing.

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.