As 2025 is now just weeks away, we thought it’d be the perfect time to take a look at what we can expect from the luxury property market next year.
With shifting economic factors, growing demand, and evolving buyer expectations, North West London is likely to remain a prime location for high-net-worth families and professionals, while continuing to attract international investment.
The area has long been popular with international buyers, and 2025 is expected to be no different.
Why?
Well, with its proximity to central London, excellent transport links, and renowned neighbourhoods such as Hampstead, St John’s Wood, and Primrose Hill, North West London continues to appeal to wealthy buyers from across the globe.
Whether it’s the draw of prestigious schools, cultural landmarks, commuter connections, or simply the serene surroundings, the area offers a unique blend of cosmopolitan living and tranquility.
The luxury rental market in North West London is also expected to experience changes in 2025. While demand for long-term rentals has remained steady, we may see an increase in short-term luxury rentals, particularly as international buyers and high-net-worth individuals seek temporary accommodations in the city.
With increased competition, property owners will need to offer the best homes in the most desirable locations to attract discerning tenants.
Another key trend is the rising demand for larger properties from professionals. While the area has traditionally been popular with families and international investors, affluent professionals are increasingly seeking high-end properties. As remote working continues to be a significant part of daily life, more professionals are looking for spacious homes with dedicated workspaces in prime locations like Primrose Hill and Belsize Park.
And of course, we couldn’t talk about 2025 without mentioning the optimism surrounding interest rates. With inflation stabilising, the Bank of England has reduced the base rate by 0.25%. But will they cut rates further in 2025? It seems likely. Although economists have made various predictions, the consensus is that rates will continue to decrease, benefiting both buyers and those currently on tracker mortgages, who have been paying higher rates than they were 3 or 4 years ago.
Looking ahead, 2025 appears promising for the housing market, with lower interest rates and greater economic stability creating a more favourable environment for buyers and international investors. Whether you’re planning to purchase a buy-to-let in Hampstead or your forever home in Kensington, we’re here to provide full market insight and advice every step of the way.
From purchasing your dream London apartment to settling into your forever family home, our team is always available to offer expert guidance and help you find your perfect property.
To find out how we can assist you, please get in touch.
