London Property Market Forecast

The UK property market is making great strides in recovering from the economic impact of the global pandemic, with many five-year forecasts anticipating steady property price growth and buyer demand to remain strong across the UK in general.

At the time of writing our 2023 UK property market forecast, London’s prime property market had experienced a lower property price growth than the rest of the UK. However, as we predicted, the market has stabilised substantially since then and looks set to outperform the mainstream market over the coming months due to its trademark resilience and the unwavering desirability of living in London.

Savills is predicting Prime Central London property to showcase this resilience with a 13.5% five-year compound price growth between now and the end of 2027, presenting a fantastic opportunity for homebuyers with a long-term outlook.

Knight Frank estimates also predict the central London property sales market to lead property price growth in the UK with an increase by up to 8.1% over the next five years, outperforming Greater London and the rest of the UK’s 2.5% predicted growth.

The future of London’s rental market also looks bright, with JLL predicting that prices may increase by 15% by 2025, with 3% growth in 2023 alone.

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.”