Apartments in London have become cheaper

Changes in house prices in London. Forecasts and Benefits for Investors

by Kos

30 Apr 2025

7 minutes

House prices in the UK have taken a noticeable dip in April, following the introduction of new stamp duty rules. According to recent data released by Nationwide, property prices fell by 0.6% compared to the previous month. But before you panic, consider this: despite the monthly downturn, house prices are still 3.4% higher than they were at the same time last year, with the average home now priced at approximately £270,752.

Economists predicted this slight slump as buyers rushed to finalise their purchases before the stamp duty changes kicked in on April 1. Nationwide's chief economist, Robert Gardner, explained that March saw a spike in property transactions as buyers scrambled to dodge the new, higher charges.

New Stamp Duty Rules from April 1, 2025

Starting April 1, the UK government introduced significant changes to stamp duty thresholds. Previously, homebuyers didn't need to pay stamp duty unless their home cost more than £250,000. But now, stamp duty is applicable for properties costing more than £125,000.

First-time buyers aren't off the hook either. Previously exempt for properties up to £425,000, they now have to pay stamp duty on new homes costing more than £300,000. These changes effectively increase the upfront costs for thousands of potential homebuyers, particularly affecting those buying in pricier areas where property values frequently exceed these new thresholds.

Most likely now the real estate mortgage market will slow down until the summer, waiting for better terms.

How can an investor make money from this mess in the London real estate market?

Forecasts and benefits for Investment

Buying with a mortgage doesn't make much sense as an investment right now. Therefore, investors who already have available capital will be able to get much more than others. When people's purchasing power is down, the demand for rental properties will rise. And when demand increases, the price of even properties in not the most favorable areas goes up.

And developers due to the low number of sales will be more willing to provide discounts and favorable conditions, to hold promotions. Perhaps you are familiar with the phrase:

“The market has fallen. It's time to buy!”.

The most favorable offers at the moment are houses that will be delivered in 2025. They are still at the prices of off-plan projects, but they will be completed very soon, and it will be possible to make a profit. In addition, in the UK, the process of buying a home stretches for several months, and by the time the deal is finalized, you will already have your apartment. The main thing is to lock in the price now.

New house projects in London 2025

To give you an example, we will show you a few offers. which are popular now. Our service 1newhomes specializes in finding new buildings. Therefore, in our catalog you will find absolutely all projects that will be completed in 2025.

Bermondsey Heights (budget option)

If you are looking for a promising investment project in London, take a look at Bermondsey Heights, a 26-storey development by Barratt London, located in Zone 2, just five minutes by train from London Bridge. The area is booming, and the opening of the new London Overground station just 400 meters away makes it particularly attractive to tenants and investors.

The development offers 163 modern one-, two-, or three-bedroom apartments, each with a balcony or conservatory. Prices start from £435,000 for one-bedroom apartments from 54m², two-bedroom apartments from £555,000 (77m²) and three-bedroom apartments from £812,000. Expected rental yields are up to 5%, making this a particularly interesting project for investors.

Located in Zone 2, close to London Bridge and the new Overground station.
Modern apartments with balconies or conservatories.
Luxury German designed kitchens with integrated appliances.
Concierge service, roof terrace and landscaped gardens.
Close proximity to London's leading universities and colleges.
Part of a major neighborhood renewal project with new business centers and public spaces.

Postmark (middle class)

Postmark London, developed by Taylor Wimpey, offers a rare opportunity to own a piece of prime real estate in Zone 1. Located at the crossroads of EC1 and WC1, this landmark development is set to complete its final phase, Monograph Square, by Q2 2025. The project encompasses 681 luxury apartments and over 20,000 sq ft of commercial space, all nestled within a 6.25-acre site that was once the Royal Mail Mount Pleasant Mail Centre.

Postmark's residences are designed for modern urban living, featuring open-plan layouts, floor-to-ceiling windows, and high-spec finishes. Prices start at £975,000 for one-bedroom apartments (from 60 sqm) and £1,395,000 for two-bedroom units (from 79 sqm). Each home includes access to premium amenities such as a private gym, cinema, rooftop terrace, and 24-hour concierge service. The development's central location ensures excellent connectivity, with Farringdon, Chancery Lane, and Russell Square stations all within walking distance.

Prime Zone 1 location between EC1 and WC1.
High-spec apartments with luxury finishes.
Comprehensive amenities including gym, cinema, and rooftop terrace.
Strong rental demand due to proximity to major business districts and universities.
Expected completion by Q2 2025, offering potential for capital appreciation.

100 George Street (premium class)

100 George Street in Marylebone offers a compelling opportunity. Developed by Derwent London in collaboration with Native Land, this luxury development is set to be completed in Q1 2025. It comprises 41 meticulously designed apartments, including 35 spacious lateral units and 6 duplex penthouses. Situated within a 2-acre mixed-use project on The Portman Estate, the development also features boutique retail and dining outlets, enhancing its appeal to both residents and investors.

The apartments boast high-quality finishes and access to premium amenities such as hotel-style concierge services, wellness facilities, a residents' lounge, a gym, a business center, and secure underground parking. Prices start at £1,850,000 for one-bedroom units and £2,950,000 for two-bedroom apartments, with three-bedroom units available upon request. Located at 98-100 George Street, London W1U 8NR, the development offers excellent connectivity, being within walking distance of Marble Arch, Bond Street, and Edgware Road stations.