London Property Market Outlook 2024: Beauchamp Estates’ View

Following a period of price adjustment in 2023, activity across both sales and lettings is showing increased stability, particularly in Prime Central London.

Drawing on Beauchamp Estates’ in-house data, alongside market intelligence from Knight Frank and Lonres, this report examines the outlook for London’s residential market in 2024, with a focus on sales performance, prime lettings demand and the economic factors shaping buyer and tenant behaviour.

London sales market: modest growth in Prime London 

Following a slight price correction in 2023, the London sales market is expected to return to measured growth in 2024. Knight Frank forecasts average price growth of around 2% across the mainstream market, a view supported by Beauchamp Estates’ internal data.

Lonres figures point to increased market balance, with available stock across Prime London rising by approximately 7.2%. This increase in supply, combined with realistic pricing, is encouraging renewed buyer engagement, particularly in established prime locations such as St John’s Wood.

Rosy Khalastchy, Head of Beauchamp Estates’ St John’s Wood office, notes that current data reflects a market adjusting to new pricing realities rather than weakening, with sustained interest in high-quality homes. The enduring interest in high-value properties is expected to continue into 2024. A 7.2% increase in available stock across prime London and modest price adjustments, suggests a market evolving towards greater balance and accessibility.

Prime and Super Prime lettings: demand remains concentrated

The prime lettings market continues to show resilience, with the super prime segment outperforming the wider rental market. Beauchamp Estates’ lettings data indicates sustained demand for high-value houses and apartments, particularly trophy homes in Prime Central London.

Chris Tinkler, Lettings Manager at Beauchamp Estates, highlights that 2023 was an exceptional year for super prime lettings, a trend expected to continue into 2024. Across the wider rental market, growth is expected to moderate. Prime Central London and Prime Outer London may see rental values stabilise following several years of rapid increases, reflecting affordability constraints rather than falling demand.

Economic conditions shaping the market

The outlook for 2024 is being shaped by broader economic trends, including easing inflationary pressures and greater clarity around interest rate trajectories. While borrowing costs remain elevated, increased certainty is already supporting buyer confidence.

“With lower inflation and a gradual reduction in interest rates, we’re optimistic about the property market’s trajectory in 2024,” comments Jeremy Gee, Managing Director at Beauchamp Estates. These sentiments are echoed in Knight Frank’s latest report, which revises its UK house price outlook to a projected 3% increase, a marked change from earlier expectations of decline.

Long-term outlook: Prime London positioned for growth

Looking beyond 2024, long-term forecasts remain positive. Knight Frank projects cumulative UK house price growth of approximately 20.5% over the next five years, with Prime Central London expected to outperform due to supply constraints and international demand.

Sara Shirazi, Lettings Manager at the Beauchamp Estates St John’s Wood Office, adds “We’ve seen a remarkable interest in prime properties in St John’s Wood. The Lonres data corroborates our observations of a market that is recalibrating itself. Despite external economic factors, our clients continue to seek high-value properties in prime London areas, which is a testament to the enduring appeal of these locations.”

As 2024 progresses, the London property market is shifting from correction to consolidation. For buyers, investors and landlords, the opportunity lies in understanding where demand is most resilient and pricing is realistic.

With insight drawn from live transactions, prime lettings activity and long-standing market presence, Beauchamp Estates continues to advise clients navigating London’s evolving residential landscape with clarity and confidence.

* Forecast compiled from published stats from sources including Knight Frank and Lonres