2023-2024 was a year of waiting for buyers and sellers to align their pricing expectations. The frenzied boom of 2021, driven by pandemic dynamics, was unsustainable as COVID receded from people’s minds and construction costs soared, making renovation projects less accessible.
By mid-2024, some price corrections brought renewed activity, leading to a busy spring and summer market relatively unaffected by budget concerns. Mortgage rate reductions added further momentum, giving buyers a welcomed boost. However, the gap between what sellers were hoping to achieve and what buyers were willing to pay remained significant, with many sellers setting overly high prices that buyers weren't prepared to meet.
The two largest discounts we’ve secured this year were on properties that had been on the market for some time. For instance, this summer we helped a family in St John’s Wood who had previously been searching for two years without success due to inflated prices. Within just two months of working together, they found their ideal home, which we were able to secure at 8.2% below the asking price. The property had been listed with multiple agents and had struggled to sell for over a year, creating a favourable negotiating position for my client. Despite another bidder offering £50,000 more, the seller accepted our lower offer, recognising the credibility of my buyer who had the support of a buying agent. The competing buyer also had particular expectations and seemed more difficult to negotiate with, leading to uncertainty for the seller.
Similarly, we recently secured a significant discount on a property for a family moving up from a flat off Finchley Road to a house in Hampstead. They had been looking independently for a long time but found prices consistently too high. Shortly after engaging our services, we identified a house in Hampstead that had lingered on the market due to its location on a main road - a factor that deterred many potential buyers given the £4million-plus price tag. Leveraging this, we were able to negotiate a 6.9% reduction off the asking price for my clients.
What are you seeing this Autumn post budget?
For local families simply moving within the North West London area, the budget’s impact will likely be minimal, as adjustments to Capital Gains Tax and Stamp Duty won’t significantly affect them. However, the seasonal winter slowdown is expected, with market activity likely picking up again in early spring. That being said, we may see an acceleration in some transactions due to the Stamp Duty changes in April.
Since the latest Budget was announced in October, it’s not quite been like a trading floor a decade ago, with calls flying in from every direction, but I am getting interesting calls from colleagues discussing market strategy and hearing more from investors and developers, which sparks hope for renewed confidence in construction despite additional stamp duty pressures.
What’s your outlook for 2025?
With improved mortgage affordability and clearer guidance from the recent budget, we can feel “cautiously optimistic” for 2025. It's a diplomatic stance, but I don’t subscribe to the idea of timing the market precisely. Unpredictable events, like Brexit and COVID, can always shift the landscape unexpectedly.
Where are the quieter and busier bits of your patch?
The NW3, NW6 and NW8 postcode districts are really popular hotspots now in North London. They encompass St Johns Wood, Belsize Park and Hampstead. St Johns Wood is especially popular with American families drawn by the American School and quick access to the Jubilee Line, connecting directly to Canary Wharf. Its central location also appeals to cricket fans, with Lords close by. Whilst in Belsize Park, property listings and transactions in this area are booming. You can catch a bus or tube from Belsize Park and in just 30 minutes be in the heart of Soho or Marylebone. With average property prices at £18,000 per sqm here compared to £44,000 per sqm in Marylebone, living in Belsize Park means you can often upgrade from an apartment to a house twice the size, surrounded by greenery and excellent schools. Meanwhile, West and South Hampstead, though lacking a major park like Regent's Park, Primrose Hill or Hampstead Heath, benefit from their proximity to Finchley Road’s shops, tube station and Queen’s Park’s trendy restaurants. The area is also well-connected by coach routes to many secondary schools, making it an increasingly popular choice given the value it offers. Prices vary across these neighbourhoods, with some streets featuring larger gardens, charming architecture and a quieter atmosphere, adding to the appeal and diversity within these sought-after areas.