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Published: 10 February 2025

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1,591 homes sold for £2m or more in 2024, with an average sold price of £2.75m

New research has revealed which prime London postcodes are currently seeing the highest levels of market activity, as well as the postcodes commanding the highest price amongst the capital’s high-end homebuyers.

Sold price records from the Land Registry were analysed, highlighting properties to have sold at £2m or more across the prime London market in 2024 and finding that across the prime London market as a whole, some 1,591 homes sold for £2m or more in 2024, with an average sold price of £2.75m - 438% more than the wider London average.

Most in-demand postcode

When it comes to the sheer level of market activity seen over the last year, the SW6 postcode has proved to be the hottest pocket of the prime London property market. The Fulham postcode saw some 102 homes sold over the course of 2024 at £2m or more, with the Chelsea postcode of SW3 ranking second with 78 transactions, followed by Barnet’s NW3 postcode with 68 homes sold.

Highest average sold price

The highest average sold price across all prime London postcodes over the last year is found within the W1B postcode - which runs from Regents Park to Oxford Circus and Piccadilly Circus. Last year, property sales in the postcode averaged £6.225m.

The WC2H postcode, which straddles Camden and Westminster, was home to the second-highest average sold price for homes priced at £2m or more, coming in at £5.19m in 2024.

Westminster's SW1W postcode ranks third, with an average sold price of £4.545m.

Highest prime postcode premium

However, when it comes to the highest prime London postcode price premium, the E1 postcode of Tower Hamlets tops the table - which includes the city fringe and areas such as Aldgate. Whilst the average selling price for transactions at £2m or more over the last year sits at just £3.38m, this is some 648% higher than the average price across the wider borough of Tower Hamlets.

“Much has been made of the decline in demand for prime London properties but with over 1,500 transactions taking place for £2m or more over the last year, it’s clear that high-end homebuyers still view the capital as a worthwhile investment," noted Director of Benham and Reeves, Marc von Grundherr.

He added, "It’s also interesting to see that whilst the traditional prime heartlands remain the go to for many buyers, there are prime transactions taking place the length and breadth of the capital, with homes selling for £2m or more across the likes of Bromley, Croydon, Havering and Ealing.

"This demonstrates that, whilst the pandemic is thankfully firmly behind us, prime London buyers are continuing to look to the peripherals of the capital in search of larger homes and a greater abundance of outdoor and green space.”

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Published: 03 February 2025

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The Bank of England is very likely to cut base rate this week, according to most experts.

Sarah Coles, head of personal finance at Hargreaves Lansdown, says a rate cut has been on the cards ever since inflation came in lower than expected for December, and the Bank of England lost its only good reason not to cut to support the flagging economy. 

But she warns that mortgage borrowers won’t be dancing in the streets.

“If you’re on a fixed rate, it’s not going to move the dial significantly overnight, because the market had already largely priced this in. Right now, Moneyfacts data shows the average two-year fixed rate mortgage has inched up from 5.48% at the start of the year to 5.52%. It may inch down again in the coming days, but news that mortgage rates might be back where they were a month ago is unlikely to unlock the floodgates” she says.

“What’s more positive is that if we don’t get any nasty surprises on inflation, rates are likely to be on their way down. It’s never a straight line, and it’s not worth holding your breath for deals back at 2% – but things are likely to be moving in the right direction. 

“The latest HL Savings & Resilience Barometer shows that people with a mortgage have an average of £116,890 outstanding on their loan, so even the smallest shift can make a big difference to their financial resilience.”

Coles’ HL colleague Susannah Streeter, head of money and markets, says that three members of the Bank of England monetary policy committee wanted to see a rate cut at the last meeting to boost growth, and it’s looking highly likely that more will follow their lead on Thursday and vote for a reduction.  

She continues: “Traders are currently pricing in the chances of an interest rate cut at 84%. The Fed’s decision to hold rates, and its more cautious outlook, will also be playing on minds. So a rate cut encore may not materialise very quickly, given that inflationary pressures are waiting in the wings. 

“Average prices charged by firms were rising at the fastest pace in January for 18 months, according to the flash purchasing managers index from S&P Global, which is monitored by the Bank.

“Troupes of retailers have threatened to raise prices, due to the burden of higher National Insurance contributions from April. At the same time, companies in the private sector are cutting jobs at the fastest rate since the pandemic. 

“The spectre of stagflation is looming over the economy, with inflation looking set to rise, while the economy stagnates, and this may constrain rapid monetary policy moves in the months to come. Financial markets are still pricing in an additional two interest rate cuts this year, but there is likely to be more caution around the table.”

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Published: 20 January 2025

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The UK housing market is currently booming – if you know where to look.

Zoopla has identified what it says are housing markets with best prospects for house price growth in 2025.

The property portal has assessed a range of key housing indicators including the affordability of homes, how quickly property is selling, how much asking prices are being cut to attract demand and how many homes have been on the market for more than six months. These factors have been collated and ranked across 120 postal areas of the UK to create an overall ranking of the areas with the best prospects for 2025.

The UK housing market returned to growth in 2024 as incomes grew, mortgage rates fell and sales volumes recovered. House price inflation varies widely across the UK with faster price inflation outside southern England.

House price inflation by region 

Housing markets in Scotland lead the rankings in the UK, accounting for nine out of the top ten slots. The overall leader is the Motherwell postal area in Scotland, where house prices average at £129,000 and are already increasing by an above average rate of 3.8 per cent. The top five UK housing markets are in Eastern Scotland, in and around Glasgow covering Motherwell, Glasgow, Paisley, Falkirk and Kirkcaldy postal areas.

Top ten housing markets in the UK

Source: Zoopla

House prices in Scotland are among the cheapest in the UK compared to incomes, while homes are generally faster to sell in Scotland as the system for selling homes is different. However, removing time to sell from the ranking criteria still sees areas in Scotland taking eight out of the ten places in the top ten table.

Motherwell is already registering the fastest house price growth in Scotland (3.8%) followed by 3.5% in Falkirk against a 2.6% average for Scotland as a whole.

Aberdeen is at the bottom of the ranking for Scotland and is a market that has been struggling from low investment in the oil and gas industry, a key driver of the economy in northeast Scotland.

The markets with the best prospects for 2025 in England are led by Newcastle, closely followed by Leeds, Stoke-on-Trent, Wigan and Carlisle. Housing affordability typically sits below the national average level, creating headroom for price rises provided local economies grow and create jobs. House prices are rising between two per cent and five per cent across these areas, with prices in Wigan already rising at five per cent a year.

Wolverhampton is the one area outside Northern England in the best-ranked markets where asking price reductions of over five per cent are low and house prices sit at just over £201,000. This is 13% below the West Midlands average, offering home buyers better value for money.

Top ten markets in England with best prospects for 2025

Source: Zoopla

The areas with the lowest rankings for 2025 are found in inner London and across Southern England. This is primarily a function of higher property prices, as these markets continue to adjust to the impact of higher mortgage rates through longer sales times and greater asking price reductions. Central, South West, North West and West London sit at the bottom of the rankings, due to longer sales times and average house prices over £635,000. This is more than double the UK average and higher than the London average price (£535,000).

Other areas of London are higher in the rankings as house prices are lower and more accessible to a wider range of buyers. The highest-ranked is Sutton in outer South London, with a time to sell of 33 days and just 14% of homes seeing asking price reductions compared to almost 20 per cent in London.

Some coastal towns in Southern England like Bournemouth and Torquay also sit in the bottom ten markets due to a reversal of pandemic factors and incoming tax changes on second homes. Others are in closer proximity to London, including Tunbridge Wells and  Canterbury, where prices grew quickly over the pandemic and local markets are adjusting to higher mortgage rates.

Price falls in these lower-ranked areas aren’t expected in 2025, but house prices are likely to rise more slowly than incomes as affordability continues to reset in the face of higher mortgage rates. Value for money is slowly returning to the London property market after a decade of below-average growth. Although many London areas sit at the bottom of the rankings, prospects in London are much improved on those over recent years.

Bottom ten housing markets in England

Source: Zoopla

In Wales, the markets with the best prospects are found in southern Wales where there is a greater concentration of jobs and economic activity led by Cardiff and Newport.

Market conditions are less strong in mid and northern Wales where house prices rose very quickly over the pandemic during the search for more space. These areas are now facing weaker demand in the face of affordability pressures and a modest reversal of pandemic trends. House prices in Wales are 30% higher since the start of the pandemic in 2020, compared to an eight per cent increase in London and 20% at a UK level.

Housing markets in Wales

Source: Zoopla

House prices are currently rising fastest in Northern Ireland, running at almost seven per cent yoy, as values rebound off a low base after lagging behind the rest of the UK over the last decade. The resolution of trading arrangements post-Brexit is a key factor supporting increased housing demand. The BT postal area covering Northern Ireland is ranked number 19 out of 120, with 20 days to sell a home and just ten per cent of properties cutting asking prices. House prices in Northern Ireland will continue to increase quickly over 2025 as prices start to catch up with the rest of the UK.

Richard Donnell, executive director at Zoopla, said: “The housing market returned to growth in 2024 with more sales and higher prices as mortgage rates fell. We expect average UK house prices to increase by 2.5 per cent in 2025. Our analysis of key local market indicators reveals the areas where there is scope for increased numbers of home moves and house prices to increase at an above-average rate over 2025. While the outlook is best in Scotland and Northern England, there is a spread right across the UK reflecting the demand for and affordability of homes.

“Home values are likely to rise at a lower rate in areas towards the bottom of the rankings. Value for money is slowly returning to the London property market after a decade of below-average growth so while many London areas are towards the bottom of the rankings the prospects in London are much improved on those over recent years.

“Serious sellers looking to move home in 2025 need to consider the local market fundamentals which will have an impact on how you price your home. Speaking to local agents is the best way to get insight into local conditions and how to price your home for a sale.”

Map of rankings across 120 UK postal areas

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Published: 11 January 2025

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Leading lettings expert and Past President of ARLA Propertymark, Maxine Fothergill outlines the changes and offers advice on how to prepare – and to have your say!

The Government’s recent consultation on Energy Performance Certificates (EPCs) proposes significant reforms to reshape how energy efficiency is assessed across the UK housing market. While these changes aim to align with net zero goals by 2050, they also raise concerns about cost, practicality, and their potential impact on the property sector.

Let’s explore what’s being proposed and how it could affect homeowners, landlords, and tenants.

Why are changes being proposed?

EPCs were introduced in 2008 as part of efforts to decarbonise the UK’s housing stock, which accounts for around 20% of national greenhouse gas emissions. The certificates assess a property’s energy efficiency and recommend improvements, with landlords and sellers required to provide one when marketing a property.

However, the current system has faced criticism for being outdated and inconsistent. For example, properties with heat pumps—a low-carbon heating solution—may receive lower ratings due to electricity costs, despite being more environmentally friendly. The proposed changes aim to modernise EPCs, making them more accurate and useful for property owners and tenants.

Key proposed changes

1. Introduction of New Metrics

The government plans to replace the current two headline metrics—the Energy Efficiency Rating (EER) and Energy Impact Rating (EIR)—with a broader set of measures. These include:

• Energy Cost: Predicts running costs for energy use.
• Fabric Performance: Assesses insulation and thermal efficiency (walls, roof, and windows).
• Heating System: Rates the efficiency and environmental impact of the heating system.
• Smart Readiness: Evaluates the ability to integrate smart technologies, such as smart meters.

These changes are intended to give property owners and tenants a clearer understanding of energy efficiency and where improvements are needed.

2. Reduced Validity Period

EPCs currently last for 10 years, but the government proposes reducing this to as little as two years, with other options including five or seven years.

This would require more frequent assessments, increasing costs for homeowners and landlords. For landlords, EPCs must remain valid throughout tenancies, meaning mid-tenancy renewals could become a regular requirement.

3. Expansion of EPC Requirements

The proposals suggest requiring EPCs in more scenarios:

• Holiday Lets: Short-term rentals would now need valid EPCs, regardless of who pays energy bills.
• Houses in Multiple Occupation (HMOs): An EPC would be required whenever a room is rented out, applying to the entire property.
• Expired EPCs: A new certificate would be needed immediately upon expiry, even if the property isn’t being sold or let.

4. Heritage Properties

Currently, listed buildings and those in conservation areas are often exempt from EPC requirements. Under the new rules, all heritage properties would require EPCs, though exemptions may still apply if improvements would significantly alter the property’s character.

5. Stricter Compliance and Higher Penalties

Penalties for failing to provide a valid EPC could rise from £200 to £325 or £400, reflecting inflation and stricter enforcement.

My views on the proposed changes

Having trained as an EPC assessor, I’ve seen how the system operates from both a technical and regulatory perspective. While I support the government’s commitment to improving energy efficiency, I have concerns about the practical impact of these reforms:

1.Cost Burden: More frequent EPC renewals and the associated costs of energy efficiency upgrades could strain property owners, particularly landlords managing large portfolios or older properties.

2. Impact on the Private Rented Sector: Landlords are already grappling with rising costs and stricter regulations. These changes could push more landlords out of the market, reducing rental supply and driving up rents.

3. Limited Environmental Impact: The UK contributes just 1% of global carbon emissions. While every effort counts, placing such significant financial and administrative burdens on property owners may not deliver proportional climate benefits.

4. Noise Abatement Issues with Heat Pumps: Heat pumps, often seen as a solution for low-carbon heating, can create noise that may trigger complaints, adding another layer of complexity for property owners.

Implications for property owners and tenants

For Homeowners

The new metrics will provide better insights into energy efficiency, potentially helping homeowners reduce energy bills. However, the cost of frequent assessments and upgrades could be a concern, particularly for older properties.

For Landlords

Landlords face increased costs and compliance requirements, including more frequent EPC renewals, stricter rules for HMOs and holiday lets, and the need to upgrade properties to meet new standards. This could discourage investment in the rental sector, exacerbating housing shortages.

For Tenants

Energy-efficient homes can lead to lower bills and more comfortable living conditions. However, if landlords pass on the cost of compliance, tenants may face higher rents.

How can you prepare?

If you own property, here’s how to start preparing for these changes:

1. Review Your Portfolio: Identify properties that may struggle to meet new requirements, such as older or heritage buildings.

2. Plan for Upgrades: Budget for energy efficiency improvements like insulation, smart technologies, and low-carbon heating systems.

3. Stay Informed: Follow updates on the consultation and seek professional advice to ensure compliance.

4. Have Your Say: Share your views by responding to the consultation, which is open until 26 February 2025.

Have your say

This is your opportunity to shape the future of EPCs and their impact on the property market. You can access the consultation and submit your feedback here:

Reforms to the Energy Performance of Buildings Regime – Consultation

Final thoughts

As a property professional with extensive experience in both regulation and practice, I see the value in improving EPCs to support sustainability. However, it’s crucial that these reforms are practical, affordable, and balanced against the realities of the housing market.

I encourage everyone involved—homeowners, landlords, and tenants—to engage with the consultation process. Together, we can ensure the system evolves in a way that benefits all stakeholders while driving meaningful progress toward Net Zero.

Maxine Fothergill is Managing Director of Amax Estates in Gravesend, a property investor with over 25 years of experience, Past President of ARLA Propertymark, a trainer for the London Landlord Accreditation Scheme (LLAS), and author of “How to Become a Successful Property Investor.”