---
title: London Property Market Update – June 2025
description: London Property Market Update – June 2025
---

[Anthony W's Blog ](https://www.anthonyw.co.uk/anthony-ws-blog)

# [London Property Market Update – June 2025](https://www.anthonyw.co.uk/anthony-ws-blog/london-property-market-update-june-2025)

 Written by [Anthony Wozniak](https://www.anthonyw.co.uk/anthony-ws-blog/author/anthony-wozniak) | Jun 19, 2025 10:42:12 AM

### 1. **Average Prices Climb Further**

April saw London property prices jump a surprising **2.6%** month‑on‑month helping push the annual growth to **3.3%**, with the average price now around **£567,000**, the highest in over two years . Some boroughs saw annual rises above 10% (Lewisham +10.3%, Bromley +9.8%) whereas pockets like Hammersmith & Fulham dropped (‑11%).

 

### 2. **Rental Market Surge & Affordability Strains**

London’s rental sector boomed in May, with a **35% surge in demand** and **9% more listings**, though rental affordability continues to cause strain.

 

### 3. **Prime & High-End Markets Cooling**

- **Prime London** (properties over £5 million) saw a sharp slowdown: transactions down ~36%, under‑offers down ~22%, while listings spiked +12%.
- New **inheritance tax rules** targeting non-domiciled homeowners triggered a **35.8% drop** in high-end sales versus last year.

 

### 4. **Stamp Duty Shake-Up Creates Volatility**

April’s SDLT reforms caused a swift dip in buyer activity and house prices nationwide dropped 2.8% that month. However, “spring rebound” sentiment is evident: Nationwide reported April’s effective reversal (+0.5%), and Garrington noted renewed buyer confidence into June.

 

### 5. **Interest Rates & Mortgage Costs Cooling**

Post-Bank of England cuts (4.25%), mortgage offers have improved, with some lenders offering sub‑4% rates boosting purchaser confidence. Analysts (Knight Frank, Zoopla, Capital Economics) forecast 3–5% price growth by end‑2025.

 

### 6. **Policy & Regulatory Drivers**

- **Leasehold & rent reforms** underway: 2024 Leasehold & Freehold Reform Act and Renters' Rights Bill aim to give tenants more rights and reduce landlord biases.
- **Affordable housing momentum**: Experts like Shaun Donovan advocate US-style tax-credit funding to increase supply.

### 7. **Major Developments & Long-Term Projects**

- **One Nine Elms**, a 58-storey mixed-use tower with 334 homes and luxury hotel, reached completion in 2024.
- **Brent Cross Town**, a £4.5 bn regeneration in Cricklewood, nears first residents in 2025, promising 6,700 homes plus workspace.

## Market Mood: Calibrating Confidence

- **Mainstream buyers**: Seizing lower mortgage costs, increased listings, and avoidance of early‑year tax rush.
- **Prime/ultra‑prime investors**: Taking a break amid tax changes and cautious global capital flows.
- **Renters**: Feeling squeezed as rental activity booms - all while reforms promise future protection.

Despite volatility from tax reforms, stamp duty changes, and policy shifts, underlying fundamentals—**lower borrowing costs, solid demand, regional price diversity**—suggest **progressive stabilisation**. The market looks poised for **2–4% annual price growth** through 2025, with more upbeat sentiment seen in early summer.

### Key Takeaways

| Area | Current Trend | Outlook |
| --- | --- | --- |
| Prices | +2.6% m/m in April; high but uneven | +3–4% by year-end |
| Prime Market | Slow & cautious | Stabilisation likely |
| Rentals | Strong demand, affordability pressured | Likely to remain tight |
| Buyers | Benefit from better mortgage rates | Renewed confidence |
| Policy | Reforms remain a wild card | Could shape mid-term trends |

This is a **dynamic market**, influenced by **policy, affordability, and global capital flows**. Whether you're buying, selling, renting, or investing, London’s property scene requires **strategic timing and local insight**. Need deeper data on borough-level trends, rental yields, or upcoming projects? I can help!

[View full post](https://www.anthonyw.co.uk/anthony-ws-blog/london-property-market-update-june-2025)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Anthony Wozniak"
  },
  "dateModified" : "2025-06-19T10:44:58.781Z",
  "datePublished" : "2025-06-19T10:42:12Z",
  "headline" : "London Property Market Update – June 2025",
  "image" : {
    "@type" : "ImageObject",
    "height" : 1024,
    "url" : "https://7623753.fs1.hubspotusercontent-na1.net/hubfs/7623753/AI-Generated%20Media/Images/The%20image%20depicts%20a%20bustling%20London%20showcasing%20a%20vibrant%20neighborhood%20filled%20with%20diverse%20architecture%20from%20modern%20highrises%20to%20charming%20Victorian%20houses%20In%20the%20foreground%20a%20group%20of%20people%20is%20engaged%20in%20animated%20conversation%20some%20holding%20smartphones.jpeg",
    "width" : 1024
  },
  "mainEntityOfPage" : "https://www.anthonyw.co.uk/anthony-ws-blog/london-property-market-update-june-2025",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "Anthony W's Blog"
  }
}
```