London house hunters are starting 2025 with a welcome boost in options as estate agency Chestertons reports a 14% rise in the number of properties on the market compared to January 2024.
The shift comes amid easing mortgage rates and growing buyer confidence, signaling renewed momentum in the capital’s property sector.
The report also highlights a significant increase in transaction activity, with 36% more properties changing hands in January 2025 compared to the previous year.
According to Matt Thompson, head of sales at Chestertons, the increased availability of properties presents a unique window for buyers.
UNCERTAINTIES
Thompson attributes this to a reduction in economic and political uncertainty, which weighed heavily on market sentiment in early 2024.
He says: “With more properties now on the market, there are some great opportunities for buyers to find the property that they have been looking for, especially now that mortgage rates have started to creep down too.”
Despite the improved supply, Thompson cautions that London remains one of the most competitive property markets globally, where demand frequently outpaces availability.
The Bank of England’s recent interest rate cut to 4.5% and the return of sub-4% mortgage deals could further intensify buyer interest in the coming months.
Thompson warns: “More buyers are likely to enter the market following the Bank of England’s decision and the re-emergence of lower mortgage rates. This could quickly shift the supply-demand balance once again.”
