The Spring 2023 London Property Market Update

London property market

Find out the latest news on buying property in London! (credit)

As spring blossoms fill the streets of London with their color and sweet scents, the prettiest season of the year is the perfect time for an update on the London property market. If you’ve been dreaming of Victorian row homes dripping with wisteria, we’re here to tell you that it’s no dream. Living in London is full of charm, which you can enjoy while staying in one of our London vacation rentals. But if you’re looking to spend more time in London and own your own home or apartment, the UK capital is an excellent market for investors.

We watch the market closely together with Suzanne Millar, one of London’s top property search agents and our trusted colleague, and we can help you transform that dream of living in London into reality. Check out the latest update on the London property market along with three beautiful properties currently on the market. To find out more, just contact our team for how we can help you buy a home in London.

London property search

Why Invest in Property in London?

London’s property market has always been and will continue to be a popular investment destination for both UK and foreign investors due to its strong rental yields, long-term capital appreciation and stable economic and political environment. In addition, global buyers are attracted to the UK’s world class education system as well as the relatively low annual property taxes.

In short, investing in real estate in central London has been an attractive investment for many decades, which we believe will continue. One additional positive for some overseas investors is the strong exchange rate between the US dollar and several other currencies against the British pound; it’s a good time to invest. However, given the relatively high transaction costs, it is best to have a 5-year investment view.

buying a home in London as a foreigner

The London Property Market in 2023

The property market has been experiencing some fluctuations in recent years but has shown resilience despite various economic and political uncertainties. Central London property prices recovered quickly after the pandemic and lifting of travel restrictions but paused at the end of the last year as mortgage rates rose. In 2023, the prime London property market is expected to remain stable, with moderate growth in property values. According to one of the leading estate agents, Knight Frank, prime central London properties are forecast to increase by 3.5% in 2023, driven by a rise in demand particularly in the luxury sector. Properties in less central areas and in the lower price brackets (mostly below £1-2 million) are quite adversely affected by the recent increase in mortgage rates—from an average 2-year mortgage rate of 1.95% in January 2022 to 5.17% in January 2023. However, in the very central areas such as Kensington & Chelsea and Westminster, over half the buyers are cash, i.e., not taking out mortgages, thus are immune to these interest rate hikes. In the outer boroughs such as Fulham and Clapham, where the vast majority of the properties are purchased by UK nationals, the prices are somewhat softer due to the higher mortgage rates.

In the longer term, price growth will be underpinned by a lack of supply, an influx of highly qualified workers owing to changes in immigration laws following Brexit, a strong demand for the British education system and the desirability of London as a one of the top global business and cultural centres.

where to buy property in London

A charming mews in Kensington – one of the most popular locations in London!

Finding the Perfect Property for Sale in London

Given the high demands and strong market, the best properties sell very quickly in London – often even before they’re on the market or in the days immediately after they’re announced. This is especially true for the most desirable central London neighbourhoods of Kensington, Chelsea, Notting Hill and Belgravia. These beautiful residential areas are also highly sought after by travelers for short term rentals, making them fine areas not just to live but also for investing. Here are a few examples of excellent properties on the market that have been hand selected by our property search agent. While these will no doubt sell quickly, they are representative of the types of properties we recommend buying in London.

Dream Location: Two-Bedroom Apartment in Kensington

apartment for sale in London

A beautiful apartment with private garden access – a rarity in central London!

This two-bedroom, two-bathroom apartment in Kensington is on the market for £1.295 million and is a great value, especially since it includes a large garden. It is already beautifully finished with a modern kitchen, built-in storage and updated bathrooms.

London apartment with garden for sale

Enjoy your own private garden in London.

The location is very convenient just steps from Kensington High Street and the beauty of Kensington Gardens, but is set in an appealing red brick mansion on a quiet and attractive street. Very few properties in central London have their own private garden space, making this an exclusive find. Yet, when you step outside to enjoy a cup of tea or a glass of wine with family or friends, it’s well worth the search for just the right property to call home.

Rare Find: Sunny Private Mews in Belgravia

London mews for sale

Finely finished London mews for sale in Belgravia.

It’s no secret that we love London mews. If that’s an unfamiliar word for you, mews houses are located in what used to be stables for the larger buildings. Now, however, these hidden away and usually very charming little streets are among the most coveted types of property in London. With their own private entrances, they also offer a wonderful sense of privacy. This is a great little mews house in a private mews in Belgravia that is on the market for £1.95 million. It is very hard to find a house in central London for £2 million or less, and to find one in this exclusive neighborhood is very special!

London mews home for sale

One of two peaceful bedrooms in this mews.

This two-level mews was completely rebuilt in the last 10 years, which means it is in very good condition. It’s well-designed to maximise space and is also south facing so is very bright. It’s exactly the type of property that is ready to be your home in London with very little additional investment.

Garden Square Setting: Lovely Two-Bedroom Apartment

London property for sale

Bonus feature: A view overlooking a pretty garden square.

This beautiful two-bedroom, two-bathroom apartment is on the market for £1.495 million and has great views over the Redcliffe Square garden and a historic church. It’s an excellent location in the Royal Borough of Kensington and Chelsea conveniently near shops, restaurants and the Tube. The reception room has very high ceilings and there’s an incredible sense of space throughout. Plus, there’s the added bonus of a little garden terrace off one of the bedrooms.

London property for sale

An excellent feature: Bedroom opens to private garden.

Can’t you imagine feeling right at home in London in these properties? If you’re thinking about buying a home or investment property in London, you can also find out more in our Buying Property in London Guide. If one of these beautiful properties has caught your eye or you’d like help finding your dream home in London, contact our team for more details!

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