City of London: Property Market 2024

City of London: Property Market 2024
Credit Unsplash

It’s one of the biggest questions that everyone is asking as we head into 2024: what is going to happen to the property market in the City of London. Here, expert Jonathan Rolande, from the National Association Of Property Buyers, gives his view.

“The first thing to say about any property prediction is that it is just that – a prediction. And the City of London, like all areas of the country, could see real volatility in the market so we should all strap ourselves in. According to Rightmove, properties in the City of London had an average price of £1,023,183 over the last year. I’d expect prices to continue to rise, and most notably, rents to continue to soar.

I actually think the increasing cost of renting a home will become the big issue in the property sector in 2024. For years it’s been a massive talking point but rents in some parts, including in the City of London, are leaving many people at a breaking point.

Those with properties in Central London, where demand remains particularly high, stand to witness the most significant surges.

The bigger influence on rental costs will continue to be the availability of properties. With demand continuing apace, a supply of accommodation to rent not matching this growth is going to inevitably lead to rising prices.

NOW READ: Making moves in the property market

And whilst the fall in the rate of inflation to 4.6 per cent last month is good news for consumers, it will mean that the Bank of England’s base rate is likely to remain stable and start a gradual fall.

But with mortgages still costing significantly more than they did just two years ago, it is a prime investment opportunity for foreign investors unshackled by borrowing requirements. A piece of real estate in a thriving city like London will always provide a good rate of return on any sensible investment.

This in itself may have no real impact on the renters at the end of the chain, but it will leave a political opportunity ripe to be exploited by competing parties.

The forthcoming election is already showing signs of being fought over key issues such as housebuilding. Whilst much of the debate might be held over green and brownfield sites in the suburbs and rural communities, with high profit margins to be made by developers, any relaxing of the rules in planning and house-building will have an impact in London.

Labour, the most likely winners of the election, have a strong incentive to ensure their traditional seats in parts of London stay loyal by delivering on their home owning pledges and many young people who work in the city are likely to appreciate their message of better, more affordable housing which needs a boost in supply for them to deliver.”

For the latest headlines from the City of London and beyond, follow City Matters on TwitterInstagram and LinkedIn.