Analysis of London Property Price Trends 2017 - 2025

From 2017 onwards, London's property market entered a phase of relative stagnation and, at times, decline.

This contrasted sharply with many other UK regions, which continued to see strong growth.

• Brexit Uncertainty and Price Falls: The period leading up to and following the 2016 EU referendum introduced significant uncertainty. London's market, being more sensitive to international sentiment and investment, experienced a notable cooling. By February 2018, annual prices had fallen by -1.0%, the slowest growth since 2009. This trend continued, with prices falling by -4.4% in the year to May 2019, with the average price standing at £457,000.
• Pandemic-Era Fluctuations: While the COVID-19 pandemic briefly spurred a market rebound, with annual growth reaching 4.7% in March 2020, London consistently underperformed other UK regions. It was often the region with the lowest annual price inflation in the country.
• Recent Market Conditions (2024-2025): The most recent data indicate a market with very low growth. Annual house price inflation in London was 0.8% in the 12 months to June 2025, a figure unchanged from the previous month and the lowest in the UK. The average house price across London was reported at £561,000 in June 2025.

After decades of leading UK house price growth, the London property market has entered a prolonged period of stagnation, consistently underperforming other national regions due to severe affordability constraints and heightened sensitivity to economic pressures. While the sales market has cooled, the rental sector has experienced significant price inflation, reflecting intense underlying demand for housing in the capital.