Market Insights April 2025

Spring is finally here and we outline below the key themes we’re seeing in the prime central London property market this month.

As always, the team and I would be delighted to discuss the property market and answer any questions or requirements you may have.

Best wishes

Jo Eccles

Founder and Managing Director, Eccord

+44 (0) 20 7244 4482

jo.eccles@eccord.com

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Pricing remains sensitive, but there are opportunities to secure value

Despite Trump’s tariffs and the resulting economic volatility, none of our clients have put their plans on hold or reduced budgets, and new buyers have continued to enter the market. For our own new client searches, we have had one of our busiest Aprils in recent years.

Many buyers are adopting a ‘life goes on’ attitude with a long term focus, expecting to own the properties they are buying for at least 7 – 10 years. The driving force for these purchases continues to be varied, including buyers moving out of rentals and putting down roots, downsizing or relocating back to the UK. We are also working with an increasing number of US buyers who have made the decision to base themselves here part time or permanently, amid the political turmoil at home, and are taking advantage of the recent changes to British citizenship eligibility.

There are a growing number of sellers who are becoming realistic on pricing and there is more opportunity to secure good value. Not all sellers are reducing their prices publicly though, so buyers still need to tread carefully and do their pricing due diligence before lowballing offers. But opportunities are there.

Over the past three months, the average discount for homes selling in prime central London in under 12 weeks was just 3.1%, compared to 9.7% for properties which took 6 – 12 months to sell. This reiterates how important sensible pricing at the outset is, but in prime and super prime markets a high proportion of sellers will still prefer to test the market because they can afford to hold out.

One Notting Hill house recently sold for £23m after two years on the market – the sellers rejected offers of £20m and £21m, eventually securing the higher price they were looking for because a very niche buyer agreed to pay the premium. Other sellers are taking a much more pragmatic approach. The art to this market is knowing how to navigate a variety of sellers with different mindsets.

Bank of Mum and Dad buying properties outright

We have worked with many parents buying properties for children, and our team have handled searches for children as young as four years old through to grown-up children in their 20s and 30s. Different age ranges bring different considerations which form part of the search brief and decision making.

We have seen the landscape change for Bank of Mum and Dad buyers. Five years ago, it was common for parents to gift their grown-up child a respectable cash deposit, with the child typically then securing a mortgage for the remaining amount and the parent acting as guarantor if required. Now, parents’ mindset has noticeably shifted and we’re seeing more and more cases of parents buying substantial London properties outright for their grown-up children – often while they themselves are only in their 60s or early 70s.

Among our own clients, the Bank of Mum and Dad account for almost one third of our property transactions under £5m. Due to recent changes in the way pensions are taxed, meaning they can no longer pass pension pots on free from inheritance tax, we’re seeing parents opting to pass significant wealth on to children and grandchildren though property, and doing so much earlier in order to beat the 7-year rule.

We have recently acquired a number of homes for adult children, including a house in south west London for just over £5m, a bachelor pad in Chelsea for just over £4m and a lateral apartment in Notting Hill for £6m – all paid for in full by parents keen to pass on family wealth early. We expect this trend to continue to grow as people adapt to the new inheritance tax status quo.

In recent years it has become more common place to have cohabitation and pre-nuptial agreements in place to protect the property in case the child’s relationship breaks down, helping parents feel more comfortable about making a substantial gift.

What next for the Renters’ Rights Bill?

Reform of the private rented sector is now around the corner, with the Renters’ Rights Bill set to complete the committee stage on 6th May. The legislation is expected to receive Royal Assent and become law before Parliament’s summer recess in July, with a ‘big bang’ commencement date set for some time this autumn, at which point the new system will apply to all new and existing tenancies.

Among the biggest changes impacting landlords will be the scrapping of fixed term Assured Shorthold Tenancy (AST) agreements, introducing instead a single system of periodic tenancies. This means landlords and tenants will no longer agree fixed tenancy periods, and instead tenancies will run from month to month until either the tenant serves notice, or the landlord meets one of the grounds for repossessing the property.

It's worth noting that ASTs don’t apply to rental agreements worth more than £100,000 p/a (£1,923 per week) or those let to corporate tenants, but most landlords will lose the ability to recover possession of their property on two months’ notice at the end of a tenancy agreement. Instead, they will be able to regain possession after a minimum 12-month period, should they wish to sell or move back into the property, giving four months’ notice. (They will also be able to regain possession where there are serious rent arrears or evidence of anti-social behaviour.)

Tenants, however, will be able to serve notice within the initial 12-month protected period, providing they give two months’ notice to leave and this must be in line with the rent payment date.

There will also be changes to the way rent increases are implemented, with landlords able to increase rents on an annual basis by serving the tenant a Section 13 notice, but any proposed increase must be in line with local market rents and supported by evidence. If a tenant disagrees, they can refer the matter to tribunal with any rent increase only becoming chargeable once the matter is resolved.

To restrict bidding wars amid strong competition for a property, landlords and agents will be required to publish an asking rent for the property and will not be permitted to accept bids above the stated price.

We will continue to guide our landlords through the multiple challenges they face as the Bill passes into law, ensuring they remain fully compliant with the new regulations. Please get in touch if you would like to discuss any of these upcoming changes in more detail with our specialist rental team.

The power of placemaking by London estates

Following the Howard de Walden Estate’s hugely successful regeneration of Marylebone village, we have seen other London estates following suit and this spring sees the unveiling of some exciting area improvements.

Sloane Square is one example – the home of Eccord’s HQ, so please do come and say hello to our team if you are in the area. The Cadogan Estate’s regeneration of Chelsea is nearing completion, having already established Pavilion Road as a bustling and vibrant village hub and the transformation of Sloane Street into a tree-lined boulevard connecting Knightsbridge. Now, in partnership with the Royal Borough of Kensington & Chelsea, they have turned their attention to significantly widen the pavements and install new street furniture and lighting around Sloane Square to create an improved pedestrian experience and outdoor café scene. The works should be finished by the end of May.

At the same time, the Grosvenor Estate in Mayfair is unveiling new landscaping on Grosvenor Square and preparing to launch the Chancery Rosewood Hotel within the former US Embassy.

These projects highlight the significant benefit of having a single controlling freeholder, bringing the foresight and financial stability to curate, deliver and safeguard a vision for an area, with meaningful improvements and projects that further increase its appeal. We see buyers continue to pay a premium for the privilege and reassurance of buying into a location which is under the stewardship of a well-run estate, knowing that the future of their investment is in safe hands.