The season may be shifting, but the UK property market is moving fast. With interest rates easing slightly and more homes coming onto the market, the balance of power is shifting towards buyers - especially those who are financially prepared and willing to act.
Buying: A Buyer’s Market Emerges
Market conditions have changed significantly over the past month, with many describing it as one of the fastest shifts seen in years. The number of homes available for sale has grown, and according to Zoopla, there are now 8% more listings than this time last year.
For buyers in Tower Hamlets, this means less competition and more options. With mortgage rates stabilising, borrowing is becoming more accessible, and buyers are taking advantage. Being mortgage-approved and flexible with timelines can give buyers the upper hand.
Many lenders are also offering incentives or tailored products to help first-time buyers and those moving up the ladder.
Selling: Adjusting to a Changing Pace
Sellers in Tower Hamlets are encountering a slightly more competitive environment. The rise in listings has shifted momentum in favour of buyers, meaning that pricing a property correctly from day one is essential. Overpriced homes are being left behind as buyers become more selective.
Rightmove and other platforms have reported that the time to secure a buyer has increased slightly compared to earlier this year, highlighting the need for strong presentation, accurate pricing, and pre-prepared legal documentation to avoid delays and stand out from the crowd.
While demand hasn't disappeared, it's more cautious and value-driven. Sellers willing to be flexible and responsive to market feedback will be better positioned to achieve a sale.
Lettings & Landlords: Rental Growth Easing, But Pressure Remains
The rental market is still under pressure, but there are signs of it levelling out. According to the ONS, average rents now sit at £1,398 in England, £999 in Scotland, and £807 in Wales.
Encouragingly, rent arrears have dropped to just 2.0%, one of the lowest rates seen this year. This is a strong sign that tenants are managing their budgets more effectively, possibly due to stabilising incomes and better tenant referencing.
Despite this, stock shortages remain a concern. Around 22% of landlords have indicated they are considering exiting the market once the Renters' Rights Bill becomes law. Should this happen, it may cause further instability in 2025, tightening supply in an already stretched market.
Landlords in Tower Hamlets should continue to monitor legislation, review their portfolios, and ensure all documentation, EPCs, and maintenance requirements are fully up to date. Although conditions are starting to rebalance, demand remains high in many areas.
What Happens Next?
There’s a growing sense of caution in the market as we approach the November Budget. Some buyers are delaying decisions in case there are changes to property-related taxes, while landlords are watching closely for updates on rental legislation and potential tax reforms.
At the same time, proactive buyers and investors are recognising the current conditions as an opportunity. With greater choice, increased seller flexibility, and fewer bidding wars, now could be an ideal moment to secure a property before competition picks up again later in the year.
If you’re considering buying in Tower Hamlets, it’s worth getting your finances in place, speaking to a broker, and registering with City Realtor. Having everything ready could make all the difference in securing the right home at the right price.
Final Thought: Prepare Now, Act Smart
Buyers in Tower Hamlets: You’re in a stronger position than you have been in years. Use this time to your advantage by securing a mortgage in principle, researching local prices, and acting decisively when the right home comes up.
Sellers: The market is more competitive. Price accurately, get your home presentation-ready, and be open to negotiation.
Landlords: While rent growth is easing, demand is still high. Maintain compliance, watch for legislation, and consider your long-term strategy.
Everyone: Keep an eye on the November Budget and upcoming legislation. Policy shifts could impact timing, costs, and buyer sentiment in the final quarter of 2025.
City Realtor is here to support you in Tower Hamlets whether you're buying, selling, or letting. Call 0207 790 7702 or email admin@cityrealtor.co.uk to speak with a member of our team.
