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
Everything in this article is based on official UK government data, regulatory sources, and our own independent market analysis.
We constantly update this blog post to reflect the latest changes in London's property market.
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
- The median London apartment price of around £450,000 in 2026 is roughly 11.7 times the median London salary, which makes this city one of the least affordable housing markets in Europe.
- First-time buyers in London now face £10,000 or more in stamp duty on a typical flat purchase after the April 2025 threshold changes removed the previous £425,000 exemption.
- London flats in outer boroughs like Barking and Dagenham can cost around £5,500 per square meter, while Kensington and Chelsea often exceed £20,000 per square meter.
- Service charges (the London equivalent of HOA fees) vary wildly from £150 per month in basic buildings to over £800 per month in luxury developments with concierge and amenities.
- New-build apartments in London typically carry a 10% to 25% price premium over resale flats, though this varies heavily by micro-location and developer.
- The Bank of England base rate of 3.75% as of December 2025 directly influences mortgage pricing, with most London buyers seeing rates between 4.5% and 6% depending on deposit size.
- Council tax in London ranges from about £1,200 to £2,200 per year for most flats, depending on your borough and the property's valuation band.
- Energy costs under the Ofgem price cap for January to March 2026 work out to roughly £147 per month for a typical London apartment on a standard tariff.
How much do apartments really cost in London in 2026?
What's the average and median apartment price in London in 2026?
As of January 2026, the average apartment price in London sits at approximately £520,000 (around $700,000 USD or €600,000 EUR), while the median apartment price is closer to £450,000 (about $605,000 USD or €520,000 EUR).
When you look at price per square meter, London apartments average around £8,700 per square meter (roughly $11,700 USD or €10,000 EUR per square meter), which translates to about £810 per square foot ($1,090 USD or €930 EUR per square foot).
For most standard apartments in London, you should expect to budget somewhere between £350,000 and £750,000 (about $470,000 to $1,010,000 USD or €400,000 to €860,000 EUR), although prime central locations can push well beyond these figures.
How much is a studio apartment in London in 2026?
As of January 2026, a typical studio apartment in London costs around £300,000 to £350,000 (approximately $405,000 to $470,000 USD or €345,000 to €400,000 EUR).
For entry-level to mid-range studio apartments in outer zones, you can find options starting around £275,000 (about $370,000 USD or €315,000 EUR), while high-end or luxury studios in prime central areas like Kensington or Westminster often start at £450,000 and can exceed £700,000 (roughly $600,000 to $940,000 USD or €520,000 to €805,000 EUR).
Studio apartments in London typically range from 25 to 40 square meters, with most falling around 30 to 35 square meters, which is smaller than what you might find in many other European capitals.
How much is a one-bedroom apartment in London in 2026?
As of January 2026, a typical one-bedroom apartment in London costs approximately £400,000 to £500,000 (around $540,000 to $675,000 USD or €460,000 to €575,000 EUR).
Entry-level to mid-range one-bedroom apartments in London start around £325,000 (about $440,000 USD or €375,000 EUR) in more affordable boroughs, while high-end or luxury one-bedroom apartments in prime central locations like Marylebone or South Kensington can range from £700,000 to over £1,200,000 (roughly $940,000 to $1,620,000 USD or €805,000 to €1,380,000 EUR).
One-bedroom apartments in London typically measure between 45 and 55 square meters, with around 50 square meters being a common size for a standard one-bedroom flat in the city.
How much is a two-bedroom apartment in London in 2026?
As of January 2026, a typical two-bedroom apartment in London costs between £600,000 and £750,000 (approximately $810,000 to $1,010,000 USD or €690,000 to €860,000 EUR).
Entry-level to mid-range two-bedroom apartments can be found starting around £450,000 (about $605,000 USD or €520,000 EUR) in outer boroughs, while high-end or luxury two-bedroom apartments in prime central areas like Chelsea or Notting Hill often range from £1,100,000 to £2,500,000 or more (roughly $1,480,000 to $3,375,000 USD or €1,265,000 to €2,875,000 EUR).
By the way, you will find much more detailed price ranges for apartments in our property pack covering the property market in London.
How much is a three-bedroom apartment in London in 2026?
As of January 2026, a typical three-bedroom apartment in London costs around £850,000 to £1,100,000 (approximately $1,145,000 to $1,485,000 USD or €980,000 to €1,265,000 EUR).
Entry-level to mid-range three-bedroom apartments start around £650,000 (about $875,000 USD or €750,000 EUR) in outer zones, while high-end or luxury three-bedroom apartments in prime areas can range from £2,000,000 to well over £6,000,000 (roughly $2,700,000 to $8,100,000 USD or €2,300,000 to €6,900,000 EUR).
Three-bedroom apartments in London typically range from 85 to 110 square meters, with around 95 square meters being a standard size for this type of property in the city.
What's the price gap between new and resale apartments in London in 2026?
As of January 2026, new-build apartments in London typically carry a premium of about 10% to 25% over comparable resale apartments, depending on location and building amenities.
For new-build apartments in London, you can expect to pay around £9,500 to £11,000 per square meter on average (approximately $12,800 to $14,850 USD or €10,900 to €12,650 EUR per square meter), though this varies heavily by developer and area.
For resale apartments in London, the average price per square meter tends to fall between £7,500 and £9,000 (roughly $10,100 to $12,150 USD or €8,600 to €10,350 EUR per square meter), making them a more accessible option for many buyers.
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Can I afford to buy in London in 2026?
What's the typical total budget (all-in) to buy an apartment in London in 2026?
As of January 2026, the typical all-in budget to buy a standard London apartment is around £535,000 to £575,000 (approximately $720,000 to $775,000 USD or €615,000 to €660,000 EUR), assuming a purchase price of around £520,000.
Beyond the purchase price, your all-in budget in London should include Stamp Duty Land Tax (often the largest cost), solicitor and conveyancing fees, survey and valuation costs, mortgage arrangement fees, leasehold-related charges, and moving expenses.
We go deeper and try to understand what costs can be avoided or minimized (and how) in our London property pack.
You can also read our dedicated blog article to understand what you can at different budget levels in London.
What down payment is typical to buy in London in 2026?
As of January 2026, the typical down payment for a London apartment is around 10% to 20% of the purchase price, which means £52,000 to £104,000 (approximately $70,000 to $140,000 USD or €60,000 to €120,000 EUR) on a £520,000 apartment.
Most UK mortgage lenders require a minimum deposit of 5% to 10%, although 5% deposit mortgages often come with higher interest rates and stricter conditions.
To secure more favorable mortgage terms in London, a deposit of 15% to 25% is generally recommended, as this unlocks better interest rates and shows lenders you are a lower-risk borrower.
You can also read our latest update about mortgage and interest rates in The United Kingdom.
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.
Which neighborhoods are cheapest or priciest in London in 2026?
How much does the price per m2 for apartments vary by neighborhood in London in 2026?
As of January 2026, the price per square meter for apartments in London ranges from approximately £5,500 per square meter in the most affordable areas to over £25,000 per square meter in ultra-prime locations (roughly $7,400 to $33,750 USD or €6,300 to €28,750 EUR per square meter).
In the most affordable neighborhoods of London, such as Barking and Dagenham, Croydon, and parts of Newham, the typical price per square meter for apartments is around £5,500 to £7,500 (approximately $7,400 to $10,100 USD or €6,300 to €8,600 EUR per square meter).
In the most expensive neighborhoods like Kensington and Chelsea, Mayfair, and Knightsbridge, prices per square meter typically range from £15,000 to over £30,000 (roughly $20,200 to $40,500 USD or €17,250 to €34,500 EUR per square meter).
By the way, we've written a blog article detailing what are the current best areas to invest in property in London.
What neighborhoods are best for first-time buyers on a budget in London in 2026?
As of January 2026, the top three neighborhoods for first-time buyers on a budget in London are Barking and Dagenham, Croydon (particularly East Croydon and South Croydon), and parts of Newham near the Elizabeth Line.
In these budget-friendly London neighborhoods, apartment prices typically range from £275,000 to £400,000 (approximately $370,000 to $540,000 USD or €315,000 to €460,000 EUR), which is significantly below the London average.
These neighborhoods offer good transport links (especially with the Elizabeth Line), ongoing regeneration projects, and access to local amenities like shops and parks, making them attractive for first-time buyers seeking value.
The main trade-off of buying in these budget-friendly London neighborhoods is that commute times to central London are longer, and some areas are still undergoing regeneration, which can mean construction noise and fewer established local amenities.
Which neighborhoods have the fastest-rising apartment prices in London in 2026?
As of January 2026, the neighborhoods with the fastest-rising apartment prices in London include Walthamstow, Deptford and New Cross, and Hackney Wick and Fish Island.
These fast-appreciating London neighborhoods have seen estimated year-over-year price increases of around 4% to 7%, outpacing the broader London average of roughly 1% to 2%.
The main driver behind this rapid price growth is a combination of improved transport connectivity (especially Elizabeth Line access), ongoing regeneration projects, and an influx of young professionals seeking more affordable alternatives to central London.
You can also read our latest update about property price forecasts in London.
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What extra costs will I pay on top of the apartment price in London in 2026?
What are all the buyer closing costs when you buy an apartment in London?
The estimated total buyer closing costs for a typical apartment purchase in London range from about £15,000 to £35,000 (approximately $20,200 to $47,200 USD or €17,250 to €40,250 EUR), depending heavily on the purchase price and whether you use a mortgage.
The main categories of closing costs for London apartment buyers include Stamp Duty Land Tax, solicitor and conveyancing fees, survey and valuation fees, mortgage arrangement fees, leasehold charges (like management pack and notice fees), and moving costs.
Stamp Duty Land Tax is typically the largest closing cost expense for London buyers, especially since the April 2025 threshold changes now mean most purchases over £125,000 incur some tax.
Some closing costs in London are negotiable or can vary, including solicitor fees (where you can shop around), mortgage product fees (which vary by lender), and survey costs (depending on the type and provider you choose).
On average, how much are buyer closing costs as a percentage of the purchase price for an apartment in London?
The typical percentage of the purchase price that London apartment buyers should budget for closing costs is around 3% to 6%, with Stamp Duty being the main variable that determines where you fall in this range.
The realistic low-to-high percentage range for London closing costs is about 1% to 3% for cash buyers (who skip mortgage fees) and 3% to 6% for mortgage buyers, with higher-priced properties pushing toward the upper end due to progressive Stamp Duty rates.
We actually cover all these costs and strategies to minimize them in our pack about the real estate 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 are the ongoing monthly and yearly costs of an apartment in London in 2026?
What are typical HOA fees in London right now?
In London, the equivalent of HOA fees is called a "service charge," and the typical monthly service charge for apartments ranges from £150 to £350 per month (approximately $200 to $470 USD or €170 to €400 EUR), though this varies enormously by building.
For basic apartment buildings with minimal amenities, service charges in London can be as low as £100 to £200 per month, while luxury buildings with concierge, lifts, gyms, and pools can charge £500 to over £1,000 per month (roughly $675 to $1,350 USD or €575 to €1,150 EUR).
What utilities should I budget monthly in London right now?
The estimated total monthly utility cost for a typical London apartment is around £200 to £280 (approximately $270 to $380 USD or €230 to €320 EUR), covering energy, water, and internet.
The realistic range for monthly utilities in London depends on apartment size and usage, spanning from about £150 per month for a small, energy-efficient flat to over £350 per month for larger apartments or high-usage households.
The typical monthly utility budget in London includes electricity and gas (often combined), water and sewerage, council tax (paid separately but ongoing), and broadband internet.
Energy tends to be the most expensive utility for London apartment owners, with gas and electricity under the Ofgem price cap costing around £147 per month on average as of early 2026.
How much is property tax on apartments in London?
The estimated typical annual property tax (called council tax in London) for an apartment is around £1,200 to £2,000 (approximately $1,620 to $2,700 USD or €1,380 to €2,300 EUR), depending on your borough and the property's valuation band.
Council tax in London is calculated based on the valuation band your property falls into (Bands A through H) and the rates set by your local borough council, rather than a simple percentage of property value.
The realistic range of annual council tax in London spans from about £900 per year for Band A properties in lower-cost boroughs to over £3,000 per year for Band H properties in boroughs with higher rates.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in London.
What's the yearly building maintenance cost in London?
The estimated typical yearly building maintenance cost for London apartment owners is around £2,000 to £5,000 (approximately $2,700 to $6,750 USD or €2,300 to €5,750 EUR), which is usually embedded within your service charge.
The realistic range of yearly maintenance costs in London varies from about £1,500 per year in well-managed older buildings to over £10,000 per year in high-amenity luxury developments or buildings requiring major works.
Building maintenance costs in London typically include repairs, cleaning, lift maintenance, lighting, landscaping, building insurance, and contributions to a sinking fund for future major works.
In most London apartments, building maintenance costs are included within your service charge rather than billed separately, so your service charge payment covers both day-to-day operations and maintenance reserves.
How much does home insurance cost in London?
The estimated typical annual home insurance cost for a London apartment is around £150 to £400 (approximately $200 to $540 USD or €170 to €460 EUR) for contents insurance, while buildings insurance is often handled through your service charge.
The realistic range of annual contents insurance costs in London spans from about £100 per year for basic coverage to over £500 per year for comprehensive policies with high coverage limits and low excess amounts.
Buildings insurance for London apartments is typically arranged by the freeholder or managing agent and paid collectively through the service charge, while contents insurance is your responsibility and is optional but strongly recommended.
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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 (HM Land Registry) | It's the official UK government index for property prices and transactions. | We used it as our primary anchor for average apartment prices and trends in London. We treated it as the baseline before validating with other sources. |
| UK House Price Index Reports (GOV.UK) | It's the government's official publishing platform for national statistics. | We used it to verify methodology and access official reports. We also referenced it for historical context on price movements. |
| About the UK House Price Index (GOV.UK) | It documents the official methodology behind the UKHPI as a National Statistic. | We used it to justify why UKHPI is our primary source for London prices. We also used it to explain what the index measures. |
| London Housing Market Report (Greater London Authority) | The GLA is London's strategic authority with dedicated housing analysts. | We used it to add London-specific context to UK-wide statistics. We relied on it especially for neighborhood-level insights. |
| English Housing Survey: Floor Space Report (GOV.UK) | It's a government-commissioned analysis using official English Housing Survey data. | We used it to convert apartment prices into price-per-square-meter figures. We relied on it for typical flat size benchmarks. |
| Bank Rate Decision (Bank of England) | The Bank of England is the UK's central bank and sets the base interest rate. | We used it to set the interest rate context for early 2026 mortgage pricing. We referenced it when discussing affordability. |
| Stamp Duty Land Tax Rates (GOV.UK) | It's the official HMRC guidance for residential property tax. | We used it to calculate buyer closing costs and Stamp Duty liability. We also used it in our all-in budget examples. |
| MoneyHelper: Buying and Moving Costs | It's a UK government-backed public guidance service for consumers. | We used it for realistic fee ranges for mortgages, surveys, and other costs. We relied on it to keep our estimates practical for readers. |
| Leasehold Advisory Service (LEASE) | It's the government-funded body explaining leasehold rights and costs. | We used it to explain service charges and ground rent for London flats. We relied on it for leasehold-specific cost guidance. |
| Ofgem: Energy Price Cap Explained | Ofgem is the UK's official energy regulator. | We used it to estimate realistic energy costs for early 2026. We converted the annual cap into a monthly budget figure. |
| Ofgem: January-March 2026 Cap Change | It's a direct regulator announcement for the relevant time period. | We used it to confirm the exact cap period matches our January 2026 focus. We ensured our guidance is time-accurate. |
| Council Tax Levels 2025-26 (GOV.UK) | It's an official government statistical release on local authority tax rates. | We used it to anchor property tax estimates for London apartments. We explained why borough and band matter for individual costs. |
| Thames Water Charges Scheme 2025-26 | It's the utility's published charging scheme for the billing year. | We used it to support water cost budgeting for London residents. We noted that actual bills vary by meter and usage. |
| Zoopla House Price Index | It's a leading UK property portal with extensive transaction data. | We used it to cross-check price trends and market outlook. We referenced it for early 2026 market sentiment. |
| Statista: Flat Prices by London Borough | It aggregates official ONS and GOV.UK data into accessible borough-level figures. | We used it to validate neighborhood price variations across London. We referenced it for borough-level context. |
| The Luxury Playbook: London Market Forecast | It provides detailed market analysis with projections for the London property sector. | We used it to inform our outlook on price trends and growth areas. We cross-referenced its forecasts with official data. |
| Property Investor Today: Stamp Duty 2026 | It's a well-established UK property news source covering tax changes. | We used it to verify the April 2025 stamp duty threshold changes still apply. We referenced it for investor-specific context. |
| Wise Currency Converter | It provides mid-market exchange rates used widely for international transfers. | We used it to convert GBP figures into USD and EUR equivalents. We applied January 2026 rates for consistency. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UK. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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