{"id":21514,"date":"2026-05-15T07:20:00","date_gmt":"2026-05-15T06:20:00","guid":{"rendered":"https:\/\/www.benhams.com.sg\/news\/?p=21514"},"modified":"2026-05-15T07:20:00","modified_gmt":"2026-05-15T06:20:00","slug":"uk-property-market-remains-stable-despite-global-pressures","status":"publish","type":"post","link":"https:\/\/www.benhams.com.sg\/news\/london-property-market\/uk-property-market-remains-stable-despite-global-pressures\/","title":{"rendered":"UK property market remains stable despite global pressures"},"content":{"rendered":"

London\u2019s property market has long been one of the most scrutinised investment destinations in the world and April 2026 dealt with rising mortgage rates, a UK inflation uptick and global uncertainty stemming from geopolitical tensions in the Middle East.<\/p>\n

\"London<\/p>\n

Despite this, the London market has held steady and remains a compelling option for global property investors. <\/p>\n

Key highlights: April 2026<\/H2><\/p>\n

Here’s a quick snapshot of where things stand:<\/p>\n

\n\n\n\n\n <\/tbody>\n<\/table>\n<\/div>\n

London continues to hold strong<\/h2>\n

The US-Iran conflict escalated earlier this year and sent ripples across global energy markets. Higher oil prices pushed UK inflation to 3.3% in March and this has played a factor in rising mortgage costs. The average two-year mortgage rate is now at 5.42%, up from 4.25% before hostilities began.<\/p>\n

This translates to roughly \u00a3235 more per month on a typical new mortgage.<\/p>\n

Asking prices are once again up by 0.8% in April and the supply of new homes is at an 11-year high. Buyer demand is slightly softer than last year, but only by 7% and largely in line with the trend we’ve seen throughout 2025\u20132026.
\nThis is not a market in distress. It’s a market pausing to breathe.<\/p>\n

For discerning Singapore investors who are accustomed to navigating across market cycles, this represents an attractive entry point below the highs of previous years. <\/p>\n

Rising asking prices<\/h2>\n

Rightmove’s April House Price Index recorded a 0.8% increase in average new seller asking prices. While slightly below the long-term April average, the rise remains in line with the typical spring market uplift, when buyer activity and new listings traditionally increase. This follows Zoopla’s March data, which showed a 1.3% year-on-year increase in average UK house prices.<\/p>\n

What makes this notable is the context: supply is high, mortgage rates are elevated and buyer demand is mildly subdued. Prices still went up. That’s a market with strong underlying demand, not one dependent on borrowing to function.<\/p>\n

The national average now sits at \u00a3373,971.<\/p>\n

London: still worth the premium<\/h2>\n

The average house price in London came in at \u00a3680,147 in April, marginally down 0.1% but still nearly 82% above the national average. London’s premium is structural and is driven by global demand, housing shortage and a mature business hub that no other UK city replicates.<\/p>\n

Among the boroughs showing the strongest monthly growth:<\/p>\n

\n

\n 0.8%<\/strong>
\nRise in average new seller asking prices<\/strong>\n <\/th>\n		\n 3.9%<\/strong>
\nGrowth in average UK earnings<\/strong>\n <\/th>\n		\n 5.42%
\nAverage 2-year fixed mortgage rate<\/strong>\n <\/th>\n		\n 3.3%
\nUK inflation rate (March 2026)<\/strong>\n <\/th>\n		\n \u00a31,377\/mo
\nAverage UK private rent (up 3.4%)<\/strong>\n <\/th>\n		\n 11-yr
\nhigh Supply of new homes in the UK market<\/strong>\n <\/th>\n<\/tr>\n<\/thead>\n
\n\n\n\n\n\n\n\n\n\n <\/tbody>\n<\/table><\/div>\n

Mortgages are more expensive, but not a dealbreaker<\/h2>\n

\"Mortgages\"<\/p>\n

Mortgage rates rose from 4.25% to 5.42% on a two-year fixed deal. That \u00a3235\/month increase will affect leveraged buyers; however, two things are worth noting:<\/p>\n

First, last year\u2019s revision to the Loan-to-Income cap means a typical mover can now borrow more than before, even at higher rates. Second, average UK earnings are growing at 3.9% year-on-year, which is comfortably ahead of the 0.8% rise in asking prices.<\/p>\n

In real terms, London property<\/a> is more affordable relative to income than it was a year ago. For Singapore investors purchasing in cash or with Singapore-based financing, what matters more is that the price growth remains sustainable. <\/p>\n

Improving affordability<\/h2>\n

This might seem counterintuitive given the headlines about inflation and rates, but affordability is actually improving in the UK. <\/p>\n

How? Thanks to a combination of factors:<\/h2>\n

Borough<\/strong><\/th>\nAvg. Price
\n(April 2026)<\/strong><\/th>\n		Monthly
\nChange<\/strong><\/th>\n<\/tr>\n<\/tr>\n<\/thead>\n
Kensington & Chelsea<\/td>\n\u00a31,636,270<\/td>\n+3.1%<\/td>\n<\/tr>\n
Harrow<\/td>\n\u00a3645,543<\/td>\n+2.3%<\/td>\n<\/tr>\n
Richmond upon Thames<\/td>\n\u00a3971,432<\/td>\n+2.3%<\/td>\n<\/tr>\n
Sutton<\/td>\n\u00a3562,365<\/td>\n+2.0%<\/td>\n<\/tr>\n
Haringey<\/td>\n\u00a3697,453<\/td>\n+1.7%<\/td>\n<\/tr>\n<\/thead>\n