In recent months, the property market in London has undergone significant changes, with notable shifts observed in various regions. According to Mark Mountford, Residential Director at Rickman Properties, “Kensington and Chelsea has seen a decline in property prices month on month as a hangover from the UK General Election, US Presidential Election, and global unrest to name but a few key reasons.” This trend is reshaping the landscape for both landlords and potential buyers in our prestigious royal borough.
UK Property Market Overview
Throughout 2024, there has been a notable turning point in the broader housing market. After experiencing an average decline of 2.6% across Great Britain in the final quarter of 2023, house prices began to recover as mortgage rates dropped. By April, annual price growth turned positive, with a year-on-year rise of 2.3% reported in August. During this period, the average price hit a new high, surpassing its peak before the Liz Truss mini-budget in 2022. Hamptons therefore forecasts a optimistic outlook for the broader market, predicting a 3% price growth across Great Britain in 2025, driven by improved affordability from lower mortgage rates. However, this house price rebound has been stronger in regions outside of London, reflecting broader economic conditions.
Prime Central London Outlook
Property price recovery is not uniform across all regions. Higher taxation and market uncertainties have caused a lag in London compared to other areas.
Recent analysis from Savills indicates that average prices in Prime Central London are expected to fall by 4% in 2025 due to higher purchasing costs stemming from recent tax changes. On the other hand, recent data from Rightmove indicates that a record number of former rental properties are hitting the sales market.
This is reshaping the landscape of the Kensington and Chelsea property market—and poses several opportunities.
London Property Market Expert Insight
So how have have these shifts affected the Kensington and Chelsea market? Mark Mountford states:
“We have a host of international property sellers and buyers who are not only financially savvy but equally discretionary in their property decisions. As such, the revision in prices has been positive as a reset and creates movement once more. Therefore, the outlook is positive moving into 2025.”
Property Market Opportunities
For Private Landlords:
If you’re considering selling your London rental property, now might be an opportune time. However, it’s crucial to consider the long-term implications and seek professional advice. With anticipated declines in property values, understanding when and how to sell is essential.
For Prospective Buyers:
This could be a golden opportunity to enter (first-time buyers) or expand your presence in the Kensington and Chelsea property market. With more former rentals available, you might find Prime Central London properties with great potential that were previously off the market. However, time is of the essence; historical trends indicate that only about 37% of purchases agreed upon in January typically complete by April.
At Rickman Properties, we can provide a comprehensive market analysis to help you make an informed decision about your investment strategy:
For Renters:
While the rental market may become more competitive as properties are sold off, Kensington and Chelsea continues to offer a wide range of high-quality rental options. Staying informed about market trends will be key to securing your ideal rental property. Working with reputable estate agents like Rickman Properties will help you navigate this competitive landscape effectively.
Next Steps?
As we move into 2025, it is essential for both buyers and sellers to stay informed about these evolving dynamics and how they may impact their decisions in the property market. With international influences at play and evolving buyer behaviour—such as increased sensitivity to pricing—understanding these trends will be crucial for navigating this competitive landscape.
At Rickman Properties, we’re committed to helping our clients navigate the ebbs and flows of the property market. Whether you’re a landlord considering your options, a potential buyer looking to take advantage of new opportunities, or a tenant seeking your next home, our team of experts is here to provide tailored advice and support. As one satisfied client testified:
“I had an amazing experience with Rickman Properties Ltd. The customer service was outstanding; they went above and beyond to help me find the flat I wanted.”
This testimonial reflects our dedication to exceptional service and client satisfaction. We look forward to assisting you in your property journey!
