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The Spring London Property Market Update 2023

The Spring London Property Market Update 2023
Apr 06

The prettiest season of the year is the perfect time for a property market update in London as the streets fill with the color and scent of spring blossoms. Victorian row homes dripping with wisteria might be a dream, but it isn’t impossible. It’s an excellent market for investors if you’re interested in spending more time in London and owning your own home or apartment.

See three of the most beautiful properties currently on the market in London along with the latest updates on the London property market. 

Why Invest in London Property?

Strong rental yields, long-term capital appreciation and a stable economic and political environment make London’s property market a popular investment destination for both UK and foreign investors. Also, the UK’s top-notch education system and relatively low property taxes appeal to global buyers.

For many decades, investment in central London property has been a solid investment. Another factor that makes investing in the British pound a good idea is the strong exchange rate between the US dollar and several other currencies. It is advisable to have a 5-year investment horizon, given the relatively high transaction costs.

The London Property Market in 2023

Despite various economic and political uncertainties, the property market has shown resilience in recent years. After the pandemic and the lifting of travel restrictions, Central London property prices rebounded quickly after the pandemic but stalled at the end of last year as mortgage rates increased. 

In 2023, it is estimated that demand for prime London properties will remain stable, while property values are expected to grow moderately. 

As a result of rises in demand particularly in the luxury sector, Knight Frank predicts prime central London properties will rise by 3.5% in 2023. The recent increase in mortgage rates adversely affects properties in less central areas and in lower price brackets (mainly below £1-2 million).

Over half of buyers in Kensington & Chelsea and Westminster do not take out mortgages, so they are not affected by these interest rate hikes. 

Due to the high mortgage rates, the prices in outer boroughs such as Fulham and Clapham are somewhat softer.

Among other things, a lack of supply, changes in immigration laws following Brexit, a strong demand for British education, and London’s status as a global center of business and culture will all contribute to price growth.

The Perfect London Property for Sale

The best properties in London sell quickly due to high demand and a strong market – often before they hit the market. Kensington, Chelsea, Notting Hill and Belgravia are among the most desirable central London neighborhoods. 

Short-term rentals are popular in these beautiful residential areas, making them excellent investments as well as places to live. Our property search agent hand-picked these examples of excellent properties on the market. Despite their speedy sale, these properties represent the types of properties we recommend in London. With these being our favourite finds, you will surely understand why you should invest in London property.

1. An apartment in Kensington with two bedrooms

apartment in Kensington with two bedrooms

For £1.295 million, this Kensington apartment includes a large garden and two bedrooms. Updated bathrooms and built-in storage complement the modern kitchen.

A quiet and attractive street leads to a red brick mansion in a convenient location just steps from Kensington High Street and Kensington Gardens. Private gardens are rare in central London, making this a unique find. In the end, however, finding just the right property is worth the search.

2. The Sunny Private Mews in Belgravia is a rare find

 Sunny Private Mews in Belgravia

Our love for London mews is no secret. It used to be stables for larger buildings before being converted into mews houses. Despite this, these beautiful little streets are becoming increasingly coveted in London. Their private entrances also ensure a great deal of privacy. Listed for £1.95 million, this is a wonderful little mews house in Belgravia. Houses in this exclusive neighborhood for under £2 million are very hard to find in central London!

Two-level mews was recently rebuilt, so it is in very good shape. With its south-facing orientation, it is very bright and has well-designed space. It’s an affordable and ready-to-move-in property in London that requires very little work to make it your home.

3. Lovely apartment with two bedrooms in a garden square setting

Lovely apartment with two bedrooms

The apartment has great views of Redcliffe Square garden and a historic church and is on the market for £1.495 million. This apartment is conveniently located in Kensington and Chelsea near shops, restaurants, and the Tube. There is an incredible sense of space throughout the reception room, which has very high ceilings. Additionally, one of the bedrooms has a small garden terrace.

It is a wise investment to buy London property during 2023 for several reasons. Domestic as well as international investors continue to flock to the London property market. A growing population increases demand for housing and rental properties in the city. Lastly, with tourism and business travel expected to pick up in 2023, investors will benefit from an increase in short-term rentals and serviced apartments. As a result of government investment in infrastructure, such as Crossrail, property values are likely to rise in affected areas. It could prove to be a solid investment with long-term growth potential in London property during 2023.