The London property market remains one of the most dynamic and influential real estate landscapes in the world. As the city continues to evolve, it is essential for leaseholders, property investors, and stakeholders to stay informed about key trends shaping the market. At Wishtower, we closely monitor these developments to provide our clients with valuable insights and opportunities.

Residential Property Trends

Steady Demand Amidst Economic Challenges

Despite economic fluctuations and interest rate adjustments, London’s residential market continues to attract interest, particularly in well-managed properties with strong community appeal. While affordability remains a concern, properties offering excellent amenities, good transport links, and effective block management are seeing sustained demand.

Rise of Eco-Friendly Developments

Sustainability is becoming a significant factor in property decisions. With growing emphasis on energy efficiency, leaseholders are increasingly seeking developments that incorporate green technologies such as solar panels, improved insulation, and energy-efficient communal heating systems. Blocks that proactively integrate these features may see stronger long-term value growth.

The Shift Towards Community Living

There is a growing preference for residential blocks that offer communal gardens, co-working spaces, and social hubs. Leaseholders and residents value a sense of community, and developments that promote well-being and engagement are performing well.

Commercial Property Trends

Office Space Evolution

The commercial property sector in London is experiencing a shift towards flexible office spaces. With hybrid working becoming the norm, businesses are looking for well-managed buildings that offer adaptable workspaces, strong digital infrastructure, and enhanced employee well-being amenities. Many companies are requesting their staff return more regularly to their offices, but with a little more flexibility, so it is good to see our great city busy and vibrant once more.

Retail Resilience in Prime Locations

While high streets continue to face challenges, prime retail locations, especially those that blend shopping with experiential offerings, are witnessing renewed interest. Commercial property owners who diversify their tenant mix with hospitality, leisure, and service-based businesses are seeing more stability.

Increase in Mixed-Use Developments

Developers are focusing on mixed-use projects that combine residential, office, and retail spaces. These developments cater to the demand for convenience and integrated living, offering leaseholders easy access to essential services within their communities.

Regulatory Changes Impacting Leaseholders

Leasehold Reform Impact

With the recent Leasehold Reform Bill now in force, capping ground rents and simplifying lease extensions, leaseholders are in a stronger position when managing and planning their investments. This makes well-managed blocks even more attractive to buyers.

Building Safety and Cladding Regulations

Post-Grenfell reforms continue to shape the industry, with stringent safety regulations affecting property values and maintenance responsibilities. Ensuring compliance with these regulations is crucial for leaseholders and property owners to maintain both safety and asset value. Additional government funding in early 2025 has accelerated remediation for mid-rise blocks, making cladding issues less of a market blocker but requiring clear communication with leaseholders.

Sustainability Regulations

Tightening MEES requirements and the push towards EPC B standards for rental properties are influencing leaseholders’ refurbishment plans. Properties with strong energy performance and proactive management are seeing higher demand and reduced void periods.

Investment Opportunities

Emerging Property Hotspots

While central London remains a key focus, outer boroughs such as Croydon, Barking, and Woolwich are experiencing growth due to regeneration projects and improved transport links. Investors and leaseholders looking for long-term appreciation may find attractive opportunities in these areas.

The Rise of Build-to-Rent

Build-to-rent developments are gaining popularity, offering high-quality rental accommodation with professional management. These properties often attract young professionals and corporate tenants, ensuring stable occupancy rates and strong returns.

Economic and Market Conditions

Interest Rate Easing: The Bank of England has started gradual rate reductions in 2025 following inflation easing, prompting renewed buyer interest, especially among first-time buyers and investors.

Stamp Duty Discussions: The government is reviewing Stamp Duty thresholds to stimulate transactions, which may affect short-term buyer confidence.

Rental Market Pressure: London’s rental market continues to see record-high rents due to supply constraints, increasing interest in build-to-rent and leaseholders considering letting their flats.

How Wishtower Supports Leaseholders

At Wishtower, we understand the evolving nature of the London property market. Our expert property management services ensure leaseholders benefit from:

  • Transparent service charge management – Clear financial oversight for better budgeting.
  • Proactive building maintenance – Ensuring compliance with safety regulations.
  • Sustainable property management – Helping leaseholders future-proof their investments.
  • Community-focused solutions – Enhancing living experiences through engagement and innovation.

Get in Touch

If you want to understand how these trends affect your building or your role as a leaseholder, contact Wishtower’s team today. We’re here to ensure your property remains compliant, sustainable, and well-managed in a changing market.

For more guidance on property management and investment opportunities, contact Wishtower today:

Brighton: 01273 658030
Eastbourne: 01323 312121
Croydon: 0203 150 2050

FAQs

What are the biggest factors affecting the London property market?

Interest rates, economic stability, regulatory changes, and sustainability initiatives are key influences.

Is now a good time to invest in London property?

With regeneration projects and emerging hotspots, there are excellent opportunities for long-term growth.

How can Wishtower help leaseholders manage their property?

Wishtower offers transparent service charge management, proactive maintenance, and expert guidance on market trends.