The purchase value of property in London has grown by over 66% in the last ten years, according to data from Land Registry, with average property values rising from approximately £322,324 to £535,212. Leading UK property developer SevenCapital takes an in-depth look at what the UK’s capital city’s property forecast looks like for 2023 and beyond:
Traditionally seen as a popular property market for homebuyers, London proved to be relatively safe and extremely robust in terms of property prices in 2022 despite the rising cost of living and interest rates.
This was particularly true for the prime London property market which, largely unaffected by the rising cost of living, saw a 16.2% increase in the number of exchanges in November 2022 compared to the same month in 2021, and a 15% increase from the five year average, according to figures from Knight Frank.
This shows no signs of slowing down, with the number of prospective buyers registering in London being 28% above the five year average in the first few months of 2023. Meanwhile, the number of new sales instructions was 36% higher.
London’s prime property market has experienced lower price growth than the wider UK this year to date however, it still far outweighs the rest of the UK in monetary value, has stabilised substantially and looks set to outperform the mainstream market over the coming months.
Savills predicts that prime central London property will continue to showcase its strength, with a 13.5% compound price growth between now and the end of 2027, presenting a fantastic opportunity for homebuyers with a long-term outlook.
Meanwhile, Knight Frank estimates the central London property market will lead property price growth in the UK with an 8.1% increase over the next five years, outperforming greater London and the rest of the UK’s 2.5% predicted growth.
Simon Howard, group sales director at SevenCapital, said: “Consistently recognised as a top global centre for finance, higher education and cultural appeal, the London property market continues to show its resilience in 2023 in the face of economic and political challenges by drawing in property buyers from across the UK and globally.
“With forecasts for the next five years indicating that the London property market shows no signs of slowing down, it continues to present an exciting opportunity for buyers to purchase property in the UK’s capital city.”
SevenCapital has been making significant moves into London over recent years, with a number of high profile residential-led sites in the pipeline, including, notably, its joint venture partnership with MARK on the £500m development at 100 West Cromwell Road in Kensington. Find out more and register for updates on this fantastic development.
For more information on SevenCapital visit www.sevencapital.com