London asking prices rise 1.8% in September following a summer slowdown

London’s average property asking price rose by £11,324 (1.8%) in September, reaching £657,775. That’s a 1.8% rise and across Great Britain asking prices rose 0.7% to £367,440, the first monthly gain since May.

Key figures from September 2026

➢ Homes for sale across the UK at a 12-year high for the time of year.

➢ Average two-year fixed mortgage rate at 5.29%, up from 5.09%.

➢ UK inflation rose to 3.1% in August, with the Bank Rate held at 3.75%.

➢ Autumn Budget on 28 October.

Buyers still have plenty of choice

Only 42% of homes for sale in London are finding a buyer, against 91% in Scotland. With more properties available and buyer demand remaining subdued, sellers face greater competition and pressure to price their homes realistically. London’s average asking price is still 79% above the national figure.

However, completed transaction data presents a different picture. Land Registry puts the London average at £550,000 for July, down 3.3% on a year earlier. Asking prices show what sellers hope for. The Land Registry shows what buyers paid.

Lambeth leads the boroughs

Lambeth rose 0.7% in the month, the best of any London borough, to an average asking price of £649,420. Harrow and Croydon followed at 0.5% and Bexley at 0.4%.

Borrowing costs are moving the other way

Two-year fixed mortgage rates averaged 5.29% in Rightmove’s tracker, up from 5.09% a month earlier. The Bank of England held Bank Rate at 3.75% on 17 September, with three of nine members voting for a rise to 4%. Higher energy prices linked to the Middle East conflict are pushing inflation up and the Bank expects it to pass 4% in the first quarter of 2027. The next decision is on 5 November.

For buyers planning to borrow in the UK, these rates feed directly into affordability.

Budget on 28 October

Chancellor John Healey will deliver his first Budget on Wednesday 28 October, three days after our Singapore showcase ends.

Prime Minister Andy Burnham has already announced Your First Home. First-time buyers in England could buy a new-build with a 2.5% deposit and a government-backed equity loan of up to 20%, interest-free, at first.

Eligibility, price caps and the launch date are due at the Budget. This scheme targets first-time buyers. Overseas investors are unlikely to be in its sights. It does show government backing for new-build supply.

Commentators have also floated changes to capital gains tax and to taxes on higher-value homes.

Meet Berkeley Group in Singapore on 24 and 25 October

Join Benham and Reeves and Berkeley Group on 24-25 October at Berkeley Singapore, Tower 2, Marina Bay Financial Centre, to explore two exclusive Zone 1 London developments, with homes starting from £660,000.

The Halo at Oval Village, SE11

199 apartments and penthouses designed within the historic gas holder beside the Kia Oval, as part of the wider Oval Village regeneration. Three Tube and train stations are about ten minutes’ walk away.

Trillium, Marylebone W2

Situated between Paddington and Marylebone, with the Royal Parks, Little Venice and the West End within reach. Paddington’s Elizabeth line runs direct to Heathrow and Canary Wharf.

Berkeley representatives will be present to talk through both schemes, and attendees can enjoy exclusive deals & incentives for premium new homes. Our team will guide you through the buying process, help you compare both developments and provide tailored advice based on your budget, preferences and intended use.

Consultation slots are limited.

Register now

Benham and Reeves publishes monthly London and UK property market updates. To discuss your London property plans, contact our Singapore office.