A seasoned veteran of the residential property market has expressed concerns about the uncertainty facing the London property market in 2027. The expert predicts that geopolitical tensions, particularly the ongoing wars in Iran and Ukraine, may ease inflationary pressures if a settlement is reached.
The Bank of England's decision to increase interest rates to 4.4% will also have an impact on the market, with mortgage rates likely to peak at 4.25% in 2027. This could lead to a decrease in demand for properties, particularly in the £1 million-£3 million bracket.
According to the expert, values in this range are down around 10% from their 2024 levels, with sales taking three to six months. The market is also experiencing a shortage of ready-to-occupy homes, which can still achieve high prices if they meet the right buyer's needs.