Authored by the expert who managed and guided the team behind the United Kingdom Property Pack
Yes, the analysis of London's property market is included in our pack
This article covers the current housing prices in London, including average and median values, price per square meter, and how costs vary by neighborhood and property type.
We constantly update this blog post to reflect the latest market data available.
All figures are presented in British pounds, US dollars, and euros to help international buyers.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in London.
Insights
- London property prices fell about 2.4% year-on-year as of October 2025, marking one of the few periods of decline in the past decade for the London housing market.
- The gap between asking prices and final sale prices in London averages around 4%, but in prime central areas like Kensington, buyers often negotiate discounts of 8% to 12%.
- A studio flat in Outer London starts around £275,000, making it one of the few entry points for first-time buyers looking to get onto the London property ladder.
- New-build properties in London carry a premium of 8% to 12% over comparable existing homes, driven by warranties, energy efficiency, and modern amenities.
- Flats and maisonettes make up roughly 65% of London's property listings, reflecting the city's high-density housing stock and limited space for detached homes.
- Price per square meter in Mayfair can reach £40,000 or more, while Outer London areas like Barking and Croydon average between £4,500 and £7,000 per sqm.
- With £500,000 (about $675,000), you can realistically buy a one-bedroom flat in areas like Stratford or Croydon, which offer good transport links to central London.
- Total buying costs in London, including stamp duty, legal fees, and potential renovation, typically add 6% to 12% on top of the purchase price.
What is the average housing price in London in 2026?
The median housing price is more telling than the average because London's market has many ultra-expensive properties that pull the average up, while the median reflects what a typical buyer actually pays.
We are writing this as of the first half of 2026 using the latest official data from sources like the UK House Price Index, which we manually verified for accuracy.
The estimated median housing price in London in 2026 is around £500,000 (about $675,000 or €575,000), while the average housing price is approximately £547,000 (about $738,000 or €629,000). The difference between these two figures reflects the influence of high-end luxury properties on the overall market average.
Around 80% of residential properties in the London market in 2026 fall within a price range of £300,000 to £1,200,000 (about $405,000 to $1,620,000 or €345,000 to €1,380,000).
A realistic entry range for the London property market in 2026 is £250,000 to £350,000 (about $337,000 to $472,000 or €287,000 to €402,000), which typically gets you a leasehold studio or one-bedroom flat in Outer London areas like Croydon or Barking, often in an existing building that may need cosmetic updates.
A typical luxury property in London in 2026 ranges from £2,000,000 to £8,000,000 or more (about $2,700,000 to $10,800,000 or €2,300,000 to €9,200,000), which includes three to five bedroom townhouses or large lateral flats in prime central areas like Kensington, Chelsea, or Mayfair, usually period properties or high-spec new developments.
By the way, you will find much more detailed price ranges in our property pack covering the real estate market in London.
Are London property listing prices close to the actual sale price in 2026?
In the London property market in 2026, the estimated difference between asking prices and final sale prices is around 4% on average, meaning buyers typically pay about 4% less than the listed price.
This gap exists because sellers in London tend to price optimistically, and mortgage affordability constraints give buyers more negotiating power. The difference is larger in prime and luxury segments, where discounts of 8% to 12% are common due to fewer qualified buyers and higher stamp duty sensitivity at those price levels.
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What is the price per sq m or per sq ft for properties in London in 2026?
As of early 2026, the average housing price per square meter in London is approximately £6,500 (about $8,800 or €7,500), which translates to around £605 per square foot (about $815 or €695 per sq ft). These figures are derived from the official average price divided by the typical London home size of 84 square meters.
Small flats in prime central locations like Kensington or Mayfair have the highest price per square meter in London in 2026 because buyers pay a premium for prestigious postcodes and limited supply, while larger homes in Outer London zones have the lowest per-sqm costs due to longer commute times and less central appeal.
The highest prices per square meter in London in 2026 are found in neighborhoods like Mayfair (£25,000 to £40,000+ per sqm), Kensington (£18,000 to £30,000 per sqm), and Notting Hill (£15,000 to £25,000 per sqm). The lowest ranges are in Outer London areas like Croydon and Barking, where prices typically fall between £4,500 and £7,000 per square meter.
How have property prices evolved in London?
Compared to one year ago, London property prices have fallen by about 2.4% as of October 2025. This decline is mainly due to affordability pressures from higher mortgage costs and buyers having more negotiating power in a softer market.
Looking back roughly ten years, London property prices have increased by an estimated 20% to 35% in nominal terms. However, when adjusted for inflation, real price growth has been roughly flat to mildly positive, as general living costs rose significantly over the same period.
By the way, we've written a blog article detailing the latest updates on property price variations in London.
Finally, if you want to know whether now is a good time to buy a property there, you can check our pack covering everything there is to know about the housing market in London.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What types of properties are available in London and how do prices vary in 2026?
In the London property market in 2026, flats and maisonettes make up about 65% of listings, terraced houses account for around 20%, semi-detached homes represent roughly 10%, and detached houses are only about 5% because London's dense urban layout limits space for larger standalone properties.
Average prices by property type in London as of the first half of 2026 are as follows: studios and one-bedroom flats average around £350,000 ($472,000 or €402,000), two-bedroom flats average about £600,000 ($810,000 or €690,000), three-bedroom flats in desirable areas reach approximately £1,200,000 ($1,620,000 or €1,380,000), terraced houses average around £900,000 ($1,215,000 or €1,035,000), semi-detached homes average about £1,100,000 ($1,485,000 or €1,265,000), and detached houses average approximately £1,600,000 ($2,160,000 or €1,840,000). These figures reflect the premium London places on space and location.
If you want to know more, you should read our dedicated analyses:
- How much should you pay for a house in London?
- How much should you pay for an apartment in London?
- How much should you pay for a townhouse in London?
How do property prices compare between existing and new homes in London in 2026?
New-build properties in London in 2026 typically cost 8% to 12% more than comparable existing homes.
This premium exists because new builds come with warranties, better energy efficiency, modern layouts, and often include amenities like concierge services, while existing homes may have hidden maintenance issues despite offering more character and sometimes larger rooms.
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How do property prices vary by neighborhood in London in 2026?
Kensington and Chelsea is one of London's most exclusive areas, home to high-end flats and period townhouses near international schools and embassies. Prices here typically range from £2,500,000 to £8,000,000 ($3,375,000 to $10,800,000 or €2,875,000 to €9,200,000), reflecting the prestige and limited supply of prime central real estate.
Islington attracts young professionals and families with its mix of period conversions, modern flats, excellent restaurants, and easy commute to the City. Property prices in Islington in 2026 generally fall between £700,000 and £1,800,000 ($945,000 to $2,430,000 or €805,000 to €2,070,000), making it accessible for upper-middle budgets seeking central living.
Richmond is a family-friendly area in southwest London known for its parks, riverside setting, and strong schools. Homes here range from £900,000 to £2,500,000 ($1,215,000 to $3,375,000 or €1,035,000 to €2,875,000), appealing to families who want space and greenery while staying connected to central London.
You will find a much more detailed analysis by areas in our property pack about London. Meanwhile, here is a quick summary table we have made so you can understand how prices change across areas:
| Neighborhood | Profile | Avg Price Range (£ / $) | Avg per sqm (£ / $) | Avg per sqft (£ / $) |
|---|---|---|---|---|
| Croydon | Value / Commute | £250k-£600k / $337k-$810k | £4,500-£7,000 / $6,075-$9,450 | £418-£650 / $564-$878 |
| Barking | Entry / Value | £240k-£550k / $324k-$743k | £4,500-£7,000 / $6,075-$9,450 | £418-£650 / $564-$878 |
| Stratford | Growth / Transport | £350k-£800k / $473k-$1,080k | £6,000-£10,000 / $8,100-$13,500 | £557-£929 / $752-$1,254 |
| Greenwich | Family / Riverside | £450k-£1,100k / $608k-$1,485k | £6,000-£11,000 / $8,100-$14,850 | £557-£1,022 / $752-$1,380 |
| Walthamstow | Family / Value | £600k-£1,100k / $810k-$1,485k | £6,000-£10,000 / $8,100-$13,500 | £557-£929 / $752-$1,254 |
| Clapham | Family / Popular | £700k-£1,600k / $945k-$2,160k | £8,000-£13,000 / $10,800-$17,550 | £743-£1,208 / $1,003-$1,631 |
| Camden | Central / Vibrant | £900k-£2,200k / $1,215k-$2,970k | £10,000-£18,000 / $13,500-$24,300 | £929-£1,673 / $1,254-$2,259 |
| Islington | Central / Popular | £700k-£1,800k / $945k-$2,430k | £10,000-£17,000 / $13,500-$22,950 | £929-£1,580 / $1,254-$2,133 |
| Notting Hill | Prime / Trendy | £1,500k-£4,000k / $2,025k-$5,400k | £15,000-£25,000 / $20,250-$33,750 | £1,394-£2,323 / $1,882-$3,136 |
| St John's Wood | Prime / Family | £1,800k-£5,000k / $2,430k-$6,750k | £14,000-£24,000 / $18,900-$32,400 | £1,301-£2,230 / $1,756-$3,011 |
| Kensington | Ultra-Prime | £2,500k-£8,000k / $3,375k-$10,800k | £18,000-£30,000 / $24,300-$40,500 | £1,673-£2,787 / $2,259-$3,763 |
| Mayfair | Trophy / Luxury | £3,000k-£12,000k+ / $4,050k-$16,200k+ | £25,000-£40,000+ / $33,750-$54,000+ | £2,323-£3,716+ / $3,136-$5,017+ |
How much more do you pay for properties in London when you include renovation work, taxes, and fees?
When buying property in London in 2026, total additional costs typically add 6% to 12% on top of the purchase price, depending on stamp duty bracket and renovation scope.
For a property around $270,000 (about £200,000), you might pay an additional £15,000 to £30,000 ($20,000 to $40,000) for legal fees, surveys, moving costs, and light cosmetic updates. This brings your total outlay to roughly £215,000 to £230,000 ($290,000 to $310,000).
For a property around $675,000 (about £500,000), additional costs could range from £40,000 to £80,000 ($54,000 to $108,000), covering stamp duty, professional fees, and moderate renovation work. Your total cost would be approximately £540,000 to £580,000 ($730,000 to $783,000).
For a property around $1,350,000 (about £1,000,000), expect to pay an additional £80,000 to £180,000 ($108,000 to $243,000) or more, as stamp duty becomes significant at this level and renovation costs scale up. Your all-in cost could reach £1,080,000 to £1,180,000 ($1,458,000 to $1,593,000).
By the way, we keep updated a blog article detailing the property taxes and fees to factor in the total buying cost in London.
Meanwhile, here is a detailed table of the additional expenses you may have to pay when buying a new property in London
| Expense | Category | Estimated Cost Range (£ / $) and Details |
|---|---|---|
| Legal and Conveyancing | Fees | £1,500-£5,000 / $2,025-$6,750. This covers solicitor fees for handling contracts, title searches, and the legal transfer of ownership. Complex transactions or leasehold properties tend toward the higher end. |
| Survey | Fees | £500-£2,000 / $675-$2,700. A homebuyer report is suitable for standard properties, while a full building survey is recommended for older or larger homes. This helps identify structural issues before purchase. |
| Mortgage Fees | Fees | £0-£2,000 / $0-$2,700. Some lenders charge arrangement fees for their mortgage products. Valuation fees may also apply, though some deals include free valuations. |
| Moving Costs | Fees | £500-£3,000 / $675-$4,050. Professional removal services in London vary based on distance, volume of belongings, and whether packing services are included. |
| Basic Cosmetic Refresh | Renovation | £5,000-£20,000 / $6,750-$27,000. This covers painting, new flooring, minor fixture updates, and basic kitchen or bathroom improvements without structural changes. |
| Medium Renovation | Renovation | £25,000-£100,000 / $33,750-$135,000. This includes new kitchen or bathroom installations, rewiring, replumbing, or reconfiguring room layouts while keeping the basic structure intact. |
| Full Renovation | Renovation | £120,000-£400,000+ / $162,000-$540,000+. Major structural work, extensions, basement conversions, or complete gut renovations fall into this category. London labor and material costs are premium. |
| Stamp Duty | Taxes | Highly bracket-dependent. First-time buyers may pay nothing on properties under £425,000, while standard buyers pay scaled rates starting at 2% above £250,000, rising to 12% on portions above £1,500,000. |
We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What properties can you buy in London in 2026 with different budgets?
With $100,000 (about £74,000), there is essentially no market for buying a complete home in London, as this budget falls far below even the most affordable properties; you might only find unusual auction situations or very small shared ownership shares at this level.
With $200,000 (about £149,000), buying a full property in London remains extremely difficult, and any options would likely be shared ownership arrangements where you purchase a portion of a home rather than outright ownership.
With $300,000 (about £223,000), you could potentially find a small studio flat around 20 to 30 square meters in Outer London areas like Barking or Dagenham, likely in an existing building that needs some work, or a shared ownership share on a larger property.
With $500,000 (about £372,000), you enter the mainstream London market and could buy a one-bedroom flat of 35 to 50 square meters in areas like Stratford or Croydon, a small two-bedroom flat further out, or a new-build one-bedroom in an Outer London development.
With $1,000,000 (about £743,000), you have a solid budget for a two-bedroom flat in a good Zone 2 or Zone 3 area like Islington or Clapham, a small terraced house in an improving family neighborhood like Walthamstow, or a two-bedroom new-build in a well-connected location.
With $2,000,000 (about £1,490,000), you move into entry-level prime territory and could purchase a three-bedroom flat in central areas like Camden or Islington, a family house in a top school catchment area, or a high-spec two to three bedroom new-build with amenities in a prime-adjacent location.
If you need a more detailed analysis, we have a blog article detailing what you can buy at different budget levels in London.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about London, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| UK House Price Index (GOV.UK) | This is the UK's official house price index, based on actual registered sales data from HM Land Registry. | We used it as our primary source for London's official average price and year-on-year change figures. We also referenced national property-type breakdowns to understand pricing patterns. |
| HM Land Registry Price Paid Data | This is the official record of all completed residential property sales in England and Wales. | We used it to understand what "sold prices" mean in official terms. We also noted registration lag when interpreting recent monthly data. |
| Rightmove House Price Index | Rightmove is the UK's largest property portal with a long-running index tracking asking prices. | We used it to analyze the gap between asking and achieved prices. We also used their data on price reductions to estimate negotiation margins. |
| Bank of England Exchange Rates | This is the UK central bank's official reference for daily exchange rate data. | We used it as our formal methodology reference for GBP to USD and EUR conversions throughout the article. |
| Reuters FX Market Data | Reuters is a global financial news service providing verified real-time market data. | We used their late December 2025 snapshot to set our conversion rates at £1 equals $1.35 and €1.15. We applied these rates consistently across all price conversions. |
| English Housing Survey | This is an official government survey describing housing stock characteristics including floor areas. | We used London's average floor area of 84 sqm to calculate price per square meter figures. We also referenced it to explain why flats dominate London's market. |
| Financial Times | The FT is a leading financial newspaper providing expert analysis on UK property markets. | We referenced their reporting on prime market weakness and the "two-speed" London market. We used this to explain why top-end prices have softened more than average. |
| HMRC Stamp Duty Guidance | This is the official government source for stamp duty land tax rates and thresholds. | We used it to explain how stamp duty affects total buying costs. We noted the bracket-dependent nature of this tax in our cost estimates. |
| Office for National Statistics | The ONS is the UK's largest independent producer of official statistics. | We cross-referenced inflation data to discuss real versus nominal price changes over ten years. We also verified demographic trends affecting housing demand. |
| Zoopla | Zoopla is one of the UK's major property portals with extensive listing and market data. | We used their market reports to verify neighborhood price trends. We cross-checked their estimates against official Land Registry data. |
| Nationwide House Price Index | Nationwide is a major UK lender publishing a monthly index based on their mortgage approvals. | We used their data to cross-check year-on-year price trends. We noted their methodology differs from Land Registry as it's based on mortgage valuations. |
| Halifax House Price Index | Halifax is the UK's largest mortgage lender with extensive data on property valuations. | We referenced their index as an additional check on price movement direction. We noted their focus on mortgaged properties versus all sales. |
| RICS (Royal Institution of Chartered Surveyors) | RICS is the professional body for surveyors, providing market sentiment surveys. | We used their market reports to understand buyer and seller sentiment. We referenced their data on how long properties stay on market. |
| Greater London Authority | The GLA is the regional government body with planning and housing data for London. | We referenced their housing statistics for borough-level context. We used their data on housing supply and development pipelines. |
| Hometrack | Hometrack provides property market analytics used by lenders and investors. | We used their data to verify price variations across London postcodes. We referenced their analysis of market liquidity and transaction volumes. |
| Knight Frank | Knight Frank is a leading estate agent specializing in prime and luxury properties. | We used their prime market indices for high-end price data. We referenced their analysis of international buyer activity in central London. |
| Savills | Savills is a major property consultancy with extensive research on UK residential markets. | We used their forecasts and market commentary for context on price drivers. We referenced their data on new-build premiums. |
| UK Finance (formerly CML) | UK Finance represents the banking and finance industry with mortgage market data. | We used their lending statistics to understand affordability constraints. We referenced their data on mortgage approval trends. |
| Which? Property Guides | Which? is an independent consumer organization providing practical buying guidance. | We referenced their fee estimates for conveyancing and surveys. We used their data to verify typical additional costs for buyers. |
| Building Cost Information Service | BCIS provides construction cost data used by quantity surveyors and developers. | We used their data to estimate renovation costs in London. We referenced their regional adjustment factors for London labor rates. |
| Checkatrade | Checkatrade connects homeowners with tradespeople and publishes cost guides. | We used their price guides to verify renovation cost estimates. We cross-referenced their data with contractor quotes for London projects. |
| Statista | Statista aggregates statistics from various authoritative sources into accessible formats. | We used their compiled housing data for quick reference checks. We verified their figures against primary government sources. |
| The Telegraph Property | The Telegraph provides regular property market analysis and neighborhood guides. | We referenced their neighborhood profiles for qualitative insights. We used their reporting to understand buyer preferences by area. |
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