May traditionally marks the start of London’s ‘season’ with Chelsea Flower Show bursting into bloom this week. We then look forward to a succession of famous British sporting events: Cartier Queen’s Cup, Trooping The Colour, Royal Ascot, Wimbledon Tennis, Henley Royal Regatta and the British F1 Grand Prix. These events usually draw a flurry of international visitors and create a platform for potential property purchasers to explore London too. Our May market snapshot centres on an ‘international’ theme.
How is the prime London real estate market looking and how is YOUhome addressing the current dynamics today?
It is International economic uncertainty that is making our markets unsettled currently. Geo-political uncertainty drives population movement. For investors seeking a secure, long-term home for their capital, prime UK real estate still offers a safe haven. Yes, tariffs will reduce growth in the short term, but as we are seeing, inter-country negotiations are evolving weekly.
YOUhome’s digital data shows us U.S. visitors are the no. 2 country source of traffic on our website. Our last two sales transactions have been led by international buyers. More on International buyers shortly.
What choice do buyers find today? Supply of prime London homes on the market remains high. In fact, 20% above comparable Q1 volumes for last year. This means buyers have a wide choice, and price management is vital to attract a sale. YOUhome’s access to unrivalled market insights ensures that price negotiations are underpinned by real time data. If you are a prime London seller, it is a tough reality to hear that there is muted house price growth at best currently.
The market is also seeing a shift in best performing price bands this year. Demand has increased for properties under £1million. Properties within the £5-10 million price bands are seeing lower demand. Having noted this, YOUhome’s most recent sales include a fine Notting Hill house, asking price of £6 million, and two apartments in the £1-3 million price band.
Back to our International audiences. On the one hand, we are witnessing an exodus of HNWIs from London. Our tax regime and non-dom. regulations are driving the exodus. Yes, we now rank near the bottom of the global city index for most attractive tax havens to reside within. On the other hand, London offers a favourable exchange rate against the US dollar. There are signs our economy is improving. Our core strengths including our private education systems and our robust legal infrastructure remain solid. We are attracting new cohorts of buyers to rebalance the exodus.
Which brings us full circle to the London season. Where else in the world can you spend the next three months enjoying a cultural, sports and arts calendar like ours? London will always draw international and domestic prime London home buyers. We are responding to evolving market dynamics pro-actively and positively.
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Monday 19 May 2025