London property market report, July 2026 – London holds firm

House price growth across the UK slowed during July. London’s market continued to show resilience. Buyers entered the surprisingly scorching summer with a wider choice than they had a year ago. Sellers had to face a competitive market that rewarded sensible pricing over ambition. Against this backdrop, the capital remained the country’s highest-value housing market (despite a dip in average prices). Zoopla’s July 2026 House Price Index reported UK house price growth of 1.3% in the 12 months to June 2026, down from 1.7% over the same period a year earlier.

Key highlights: July 2026

• UK house price growth slowed to 1.3%.
• Home values fell by £3,270 in the 12 months to June 2026.
• The average London asking price reached £676,248, around 82% higher than the UK average.
• Average mortgage rates were around 4.75%.

More homes on the market, better choice for buyers

Choice became one of the best features of the city’s housing market this summer. The number of homes for sale nationally is at an all time high this time of year, giving buyers more opportunities to explore options before making a decision.

London home values fell by £3,270 in the 12 months to June 2026. This is a decline of around 0.6% annually, taking the average London home to £527,100. Even so, the capital sits well above the national average. The combination of higher supply and higher borrowing costs has changed the conversation between buyers and sellers. Buyers are now negotiating more confidently. Sellers who enter the market with realistic expectations are seeing stronger levels of interest than relying on price reductions.

Haringey records the strongest gains

Price growth varied across different London boroughs. Haringey recorded the strongest monthly increase, average values rising 2.3% to £725,484. Camden followed with a 1.9% increment. Islington, Bromley and Southwark posted monthly increases of 1.3%, 1.1% and 0.9% respectively. The spread of growth across various London regions suggests active buyer demand.

Summer conditions slowed activity

The housing market lost some momentum during the summer months. Rightmove reported that buyer demand fell temporarily by 8% in May, followed by declines of 6% in June and 4% in July. Unusually warm weather reduced viewing activity and political uncertainty led to some buyers postponing decisions. Despite that softer demand, the supply of homes coming to market has remained healthy. This leaves buyers with a wider selection than they have seen for several years.

Interest rates remain unchanged

The Bank of England left the base rate unchanged at 3.75% following its July Monetary Policy Committee meeting. The decision came after consumer price inflation eased to 2.6% in June. Average mortgage rates were around 4.75% during July. Borrowing costs remain a consideration for many households. But the stability in interest rates provided a more predictable backdrop for longer-term purchasing decisions.

Singapore events and property showcases

Our Singapore office was busy through June & July with several exciting property events and showcases. The month began with the successful launch of the latest phase of London Square Bermondsey. This award-winning development represents a compelling opportunity to own a premium London residence in one of the city’s top neighbourhood to live in.

In July, our team held an exclusive showcase of TwelveTrees Park at Berkeley Group’s Singapore office, where attendees had the opportunity to meet with the developer director. This event highlighted one of East London’s major regeneration projects and a chance to invest in Phase 1 of a 22-year vision, with a station on doorstep & short commutes to central London.

At the beginning of August, our team remained active with a showcase of two stunning Barratt London developments, Colindale Gardens and Bermondsey Heights. These masterplans represent a compelling investment opportunity in high-growth districts across the city.

Looking ahead, we will back on 5-6 September for an exclusive showcase of Berkeley Group’s top regeneration schemes, where our guests are able to compare between award-winning masterplans to identify the right fit based on their investment goals & preferences.

Reserve your spot here.

Pricing strategy continues to matter

Pricing correctly from the beginning remains one of the strongest indicators of a successful sale. Around 74% of homes sold this year completed without requiring a price reduction. Homes marketed at the right price typically secured a buyer in around 36 days. By comparison, properties that required later price reductions spent an average of 127 days on the market.

Rental market remains resilient

The Office for National Statistics reported UK rental growth of 3.3% in the 12 months to June 2026. London recorded annual rental growth of 2.2%, taking average rents to £2,302, around 66% higher than the national average of £1,388.

Demand for rental homes in London also remains strongest. Zoopla’s June Report highlighted London was the only UK region to record an increase in rental demand. Tenant enquiries were up 6% over the four weeks to 31 May 2026. Even though rental supply is around 25% below pre-pandemic levels, earnings continue to outpace rental inflation. This combination is helping improve affordability for tenants for three consecutive years.

Supporting landlords through regulatory change

The Renters’ Rights Act introduced new obligations for landlords earlier this year. These policies affect tenancy agreements, rent reviews and property standards. Our lettings team can help you navigate these requirements while continuing to focus on protecting long-term investment performance.

With offices across London and a dedicated presence in Singapore, Benham and Reeves supports clients throughout every stage of property ownership – from acquisition through to lettings and ongoing management.

To find out more about buying, letting or managing a London property, contact the Benham and Reeves Singapore office.