What’s Next for the London Property Market?

Posted by Marsh & Parsons on 18th August 2022 -

Will the London property market slow? And if so, how fast? It is a question that may well be on your mind right now if you’re thinking of moving. While the cost of living crisis is a concern, there are other significant factors which will influence what happens, too. In a recent conversation with real estate industry journal Prime Resi, Marsh & Parsons’ CEO Patrick Littlemore responded optimistically to this question, speaking of the London property market’s continued strength despite economic headwinds:

“For the past couple of years a number of factors that are unique to London has meant price growth has been positive but at a more restrained level that other parts of the country, which gives a firm foundation for the property market. The Capital’s vibrant culture and energy has bounced back post-pandemic, attracting many people who want to be close to the heart of the action. While ‘the race for space’ was a motivator for some, the widespread adoption of hybrid working policies has meant that being closer to the office is again a real benefit for many of us.

Corporate relocations are further underpinning performance as the traditional demand from large multinational employers has returned to pre-pandemic levels. All of these drivers of the London market have created strong demand which I believe will be sustained even if the economy continues to slow. And it’s worth remembering that even in the depths of the 2008 financial crisis there were many areas of London which performed very strongly, even as prices elsewhere fell.

While the cost of living crisis is a concern for everyone, we’ve seen throughout the year so far that there have been far more buyers than sellers and despite the current headwinds, there are no signs of this situation changing. So while of course we all need to be mindful of potential negative pressures, I expect that these will be mitigated by London’s unique situation which should ensure prices and the market remain resilient in the period ahead.”

Patrick Littlemore, CEO