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