Not All Doom And Gloom For UK Property Market

Spring may have arrived, but the property market isn’t quite the flourishing landscape many had anticipated.

In 2024, uncertainty around the general election and the Autumn Budget led many buyers and sellers to put their plans on hold, waiting to see what policies a Labour government would introduce. Yet the optimism that often accompanies political change never truly materialised. By the time the Autumn Statement was delivered, it was clear that higher taxes and reforms to non-dom status were set to reshape the market.

Now, as we move into spring, hopes of a surge in confidence have given way to a market still finding its footing, with billions quietly leaving the city and sentiment shifting faster than even the most seasoned observers expected, but it’s not all doom and gloom. Meanwhile, across the Atlantic, a forceful new US administration is shaking global markets, creating uncertainty that, we believe, only strengthens the UK’s reputation as a safe haven in turbulent times.

The shift to a buyer’s market, which took hold in late 2024, is still in full swing. The Bank of England is expected to cut interest rates four times this year, potentially bringing the base rate down to 3.75%. If this materialises, mortgage rates for two- and five-year fixes could hover around 4%, making borrowing significantly more affordable.
For those looking in Prime Central London, the market is delivering more choice and more negotiating power. The number of homes for sale is up 12% year-on-year, and buyers willing to move quickly are capitalising. But this is a moment in time - once rates settle, confidence will return, and competition will intensify.

The message to sellers is clear: price realistically, or risk being left behind. Well-priced properties are attracting bidding, while those clinging to last year’s expectations are stagnating.