Property is a favourite British conversation topic. Nearly everyone has an opinion on where house prices are heading, the next property hotspot or where homes should – and shouldn’t – be built.
But to get a true sense of what’s driving the market, it is worth listening to the people who live and breathe property day in, day out.
In this series, we put a property expert through their paces each month.
We want to know their view on all of the hot-button topics mentioned above as well as mortgage rates and the future of buy-to-let, alongside their best and worst property investments to date.
This month, we spoke to Marc von Grundherr, director at London estate agent Benham & Reeves.
Marc invested in his first property before going to university. He continued to invest during his career in the City, when he worked in the US, across Europe and in Asia.
In 1996, he decided to mix business and pleasure by joining Benham and Reeves.
He has invested in properties in London, Dubai, Malaysia and Brazil.
In the hot seat: Marc von Grundherr, director at London estate agent Benham & Reeves
1. What will house prices do over the next 12 months?
I expect house prices to rise by around 2 per cent to 3 per cent over the next 12 months.
Mortgage affordability has improved, buyer confidence has returned and demand continues to outweigh supply across much of the country.
We’re unlikely to see another post-pandemic surge, but the market is in a far healthier position than many people give it credit for.
2. What about the next 10 years?
Over the next decade, I think we’ll see cumulative house price growth of around 20 per cent to 30 per cent.
The UK has consistently failed to build enough homes for decades and that imbalance isn’t going away anytime soon.
Property will continue to be one of the strongest long-term wealth preservation assets available.
3. Where will mortgage rates be in 12 months?
Provided inflation continues to ease, I’d expect the most competitive mortgage deals to sit somewhere around 3.25 per cent to 3.5 per cent this time next year.
I don’t think we’re going back to the ultra-low rates of the past, but borrowing should become progressively more affordable. That should continue to support buyer confidence.
4. What type of mortgage would you go for right now?
Personally, I’d favour a five-year fixed rate today. It provides certainty, allows you to plan ahead and removes the temptation of trying to second guess what the Bank of England might do next.
Sometimes peace of mind is worth more than chasing the absolute lowest rate.
5. One negotiation tip for buyers?
Be financially prepared before making an offer. Sellers often value certainty almost as much as price, so having your finances organised can give you a real advantage over competing buyers.
6. Best advice for someone getting on the ladder?
Buy when you can comfortably afford to rather than waiting for the perfect market.
People spend too much time trying to predict house prices when the reality is that time in the market almost always beats timing the market.
Marc von Grundherr says that buyers who have their finances organised will have a real advantage over competing buyers
7. Best advice for someone selling this year?
Price realistically from day one. Buyers are incredibly well informed and overpriced homes simply sit on the market for longer.
The best-presented properties that are priced correctly continue to attract excellent levels of interest.
8. Do we have a housing shortage?
Almost every issue we face – whether it’s affordability, rents or house prices – comes back to not having enough homes.
We need meaningful planning reform backed by a long-term commitment to delivering more housing across every tenure.
9. What could stop house prices rising further?
Political and wider economic uncertainty. Property markets don’t like unpredictability and frequent changes to taxation or housing policy can damage confidence far more quickly than modest changes in mortgage rates.
10. Is buy-to-let a good or bad investment these days?
It’s still an excellent investment for professional landlords and experienced investors who take a long-term view.
The days of passive investing are behind us, but despite the wider narrative, tenant demand remains exceptionally strong and quality rental property continues to deliver attractive long-term returns.
I think we’ll continue to see the professionalisation of the rental sector. Larger portfolio landlords, institutional investors and build-to-rent operators will account for an increasing share of the market, while the number of smaller landlords is likely to continue falling. That shift is already well underway.
Rumour mill: Marc von Grundherr says that uncertainty caused by recent tax changes linked to Andy Burnham are likely to impact house prices
11. If you could invest in one location over the next decade?
London, without hesitation. It has repeatedly demonstrated its resilience through political and economic cycles and remains one of the world’s leading financial centres.
Domestic and international demand isn’t going anywhere.
12. One location you’d avoid?
I wouldn’t avoid an entire town or city because every market has opportunities.
I’d simply be cautious of areas that rely too heavily on a single employer or industry, as they can become vulnerable very quickly if circumstances change.
13. Are new builds a bad investment compared to period homes?
Not at all. New builds often offer lower maintenance costs, better energy efficiency and strong rental appeal, while period homes benefit from character and scarcity.
Ultimately, location will always have the biggest influence on long-term performance.
14. Has the leasehold market become toxic?
I wouldn’t say toxic, but buyers are certainly more informed than they used to be.
Good leasehold properties remain excellent homes and investments, provided purchasers understand service charges, lease length and how the building is managed.
15. Prime Central London remains below its 2014 peak. Will it boom again?
I believe it will recover strongly over time, although perhaps not in the explosive way we’ve seen historically.
Prime Central London remains one of the world’s premier wealth preservation markets and international demand for it has never disappeared.
As confidence continues to return, I think we’ll see that reflected in values.
Still okay: Leasehold properties can be good investments, provided buyers understand service charges, lease length and how the building is managed, says von Grundherr
16. If you were Chancellor, what would you do for first-time buyers?
I’d focus on increasing housing supply and reforming stamp duty.
Government incentives can help, but unless we’re building significantly more homes, affordability pressures will remain. Fixing supply is the only genuine long-term solution.
17. What was the most damaging tax change of the past decade?
The cumulative changes to landlord taxation. Removing mortgage interest relief, increasing stamp duty surcharges and introducing additional regulatory costs have all discouraged investment.
Ultimately, that has reduced rental supply and contributed to higher rents.
18. The best property investment you’ve ever made?
Buying during periods of uncertainty. Some of the strongest long-term returns come from investing when sentiment is cautious rather than when everyone else is piling into the market.
19. And your worst one?
Passing on opportunities because of short-term headlines.
Markets will always fluctuate, but allowing negative sentiment to dictate long-term investment decisions can prove to be a very expensive mistake.
20. What would you do if you inherited £100,000 tomorrow?
Everyone’s financial circumstances are different, so it’s important to take appropriate financial advice rather than following someone else’s approach.
Personally, I’d use it to continue growing my rental property portfolio because I remain extremely confident in the long-term fundamentals of buy-to-let.
Despite much of the recent narrative, professionally managed rental property continues to offer a compelling combination of income, long-term capital growth and wealth preservation.
