Average House Prices in London (2025)

London’s housing market is famous worldwide: eye-watering prices in Kensington, surprising value in Croydon, and a history of bouncing back from every wobble.

As of 2025, the average London home costs £525,000 nearly double the UK average of £308,000 (Land Registry). But your buying power depends massively on where (and what) you buy.

This guide breaks down the data: borough by borough, property type by property type, and looks ahead to 2026.

London’s Current Average House Price

According to the UK House Price Index (Land Registry):

• Detached: £1.07m
• Semi-detached: £670,000
• Terraced: £560,000
• Flats/maisonettes: £430,000

Detached homes remain rare in central zones, pushing averages above £1m. By contrast, flats (£430k) form the entry point for most first-time buyers.

👉 To put that in perspective: the cost of a detached home in Croydon roughly equals the price of a one-bed flat in Camden.

Flats are the most common property type in inner London, offering an accessible entry point for many buyers. Terraced houses, often Victorian or Edwardian in style, form the backbone of London’s residential streets. Semi-detached homes are especially popular in suburban areas, providing more space and privacy, while detached houses are rare and typically found in the outer boroughs.

Historical House Price Trends (10-Year View)

From £390,000 in 2015 to £525,000 in 2025, London prices rose 34% over the decade (ONS). Growth wasn’t smooth:

• 2016–17: Brexit jitters slowed growth, but overseas investment propped up prices.
• 2020–21: The Covid pandemic cooled the market.
• 2023: A small dip as interest rates climbed (Bank of England).
• 2024–25: Recovery with +3.9% growth, fuelled by overseas demand (Savills).

Year-on-Year Growth

• 2021–22: +4.8% (stamp duty holiday effect, HMRC)
• 2022–23: –1.2% (rising mortgage costs, BoE)
• 2023–24: +1.5% (stabilisation)
• 2024–25: +3.9% (overseas rebound, Savills)

Despite the ups and downs, the long-term trajectory is steady growth making London one of the world’s most resilient property markets.

Average Prices by Borough

London is a tale of two cities: outer boroughs provide relative affordability, while central boroughs remain among the most expensive addresses on Earth.

• Cheapest: Barking & Dagenham, Croydon, Bexley — appealing to first-time buyers and commuters.
• Most expensive: Kensington & Chelsea, Westminster, Camden — where global demand keeps prices at record highs.

👉 A one-bed flat in Barking costs less than half the price of a flat in Camden.

Factors Influencing the Market in 2025

• Interest rates: still higher than pre-2022, reducing affordability (BoE).
• Supply constraints: limited new builds keep demand strong (MHCLG).
• International buyers: inflows from Asia and the Middle East remain steady (Knight Frank).
• Hybrid working: boosts demand in Zones 3–6 with good rail links (ONS).
• Infrastructure: the Elizabeth Line continues to lift values along its route (TfL).

Forecast for 2026

Analysts expect +2–4% growth in 2026 (Savills):

• Upside: faster interest rate cuts could push growth up to +6%.
• Downside: global uncertainty could flatten or even slightly reduce prices.

📊 Expected 2026 average: ~£540,000.

FAQs About London House Prices

What’s the average house price in London in 2025?
£525,000 — around 70% above the UK average.

Where is cheapest to buy?
Barking & Dagenham, Croydon, Bexley.

Where is most expensive?
Kensington & Chelsea (£1.5m+), Westminster (£1.2m), Camden (£925k).

Are prices rising or falling?
Up 3.9% year-on-year after a small 2023 dip.

Will prices rise in 2026?
Forecast: 2–4% growth.

Is London property still a good investment?
Yes, historically resilient with long-term growth but careful borough-level research is essential.

Practical Tips for Buyers

Methodology & Sources

Data from HM Land Registry, ONS, and Bank of England. Forecasts from Savills, buyer trend analysis from Knight Frank.

All figures are average sold prices (not asking prices) and expressed as £ per property.