The past year has been a story of two Londons, one of international prestige and one of everyday life. According to Santander’s latest market update, London’s property market has weathered a difficult 12 months, but there are encouraging signs that the tide may be turning.
A Year of Correction
Prime London, the high-value central areas most exposed to international investment, has seen the sharpest decline in both prices and transaction volumes. Global uncertainty, geopolitical tensions, and higher borrowing costs have dampened overseas demand.
Meanwhile, the outer boroughs, home to more domestic buyers and families, have been steadier but not immune. Fewer sales and slightly lower prices have reflected a market taking a collective pause.
The Next Five Years: Modest but Meaningful Growth
Despite this slowdown, Santander forecasts moderate growth in London property values over the next five years. While the wider UK market may continue to see patchy performance, London’s global status and continued demand mean it’s expected to outperform the rest of the country.
In short, the correction phase may be nearing its end, and savvy buyers could be looking at the early stages of recovery.
What This Means for Buyers
For those who have been waiting on the sidelines, this could mark the right moment to act. With affordability expected to improve as rates fall, buyers may soon find better opportunities and stronger value than they have in several years.
Speak to a London Mortgage Adviser
Investing in the London property market has always been and continues to be a great way to invest your money and build your wealth. If you are looking to purchase a property in London and need to discuss your mortgage options, please feel free to contact our team of mortgage experts at Oportfolio Mortgages, today.
