In previous updates, we wrote about the challenges the UK property market faced in 2023. The year 2024 proved to be similarly complex, but by the end of it, we saw promising changes in the momentum. 

The year began with a sense of uncertainty, as potential buyers and investors hesitated, concerned about the potential impact of new Labour policies and grappling with changes to non-domicile legislation. People were processing the changes to non-domicile legislation and many were contemplating relocating abroad.

However, the tide began to shift during the summer, following the general elections that brought much-needed political stability and certainty.  After this, we noticed the first movement on the market. The real changes came by October, when the Budget was announced: we started seeing clear signs of market activity. Offers began to roll in, and by the end of the year, we had regained momentum, successfully closing deals and picking up the pace once again. 

As 2024 draws to a close, it is evident that high-net-worth individuals and wealthy investors have accepted the legislative changes. Yes, somebody is going to leave. However, others have made scouting trips to see what it may be like to live in Dubai or Cyprus and it turned out that actually, London and the UK is still a unique and amazing location.

According to PwC’s & ILU November report on Emerging Trends in Real Estate for 2025, London has retained its position as the number one European capital for investment. This is hardly surprising when considering what the city has to offer: world-class luxury property interiors, exceptional quality of life, political stability, robust infrastructure, schooling and a vibrant lifestyle. London remains a beacon for those seeking a competitive and sophisticated place to live and invest. Looking ahead, Zoopla forecasts a 2.5% rise in house prices in 2025, with sales expected to increase by 5% compared to 2024. 

At AZ Real Estate, we approach challenges with determination. When times are tough, waiting for better days is not an option. This year, we worked harder than ever, embracing innovation and improvisation to find a solution that initially seemed out of reach. Some of the deals we closed were a testament to that. Read about it in our next article. 

So we are looking forward to 2025 with positive energy and are planning to keep catching up on transactions that were put on hold in the last two years. As we kept saying in the last two years, the price is key: everywhere where sellers were realistic about the price (no matter what they bought the property for) and listening to our advice, we succeeded. 

Here’s to a promising year ahead!