How much do houses cost now in London? (2026)

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

How much do houses cost in London as of 2026?

What's the median and average house price in London as of 2026?

As of early 2026, the estimated average house price in London is around £850,000 (roughly $1,150,000 or €980,000), while the median house price sits closer to £720,000 (about $970,000 or €830,000).

The typical price range that covers roughly 80% of house sales in London in 2026 falls between £550,000 and £1,200,000 (approximately $740,000 to $1,620,000, or €630,000 to €1,380,000), though this excludes the cheapest entry-level options and the most expensive prime properties.

The gap between median and average house prices in London reveals that the market is heavily influenced by a smaller number of very expensive properties, particularly in central and prime areas like Kensington, Chelsea, and Hampstead, which pull the average upward.

At the median price of around £720,000 in London, a buyer can realistically expect a 3-bedroom Victorian or Edwardian terraced house in an outer London borough such as Walthamstow, Leyton, or parts of South London like Catford, typically needing some cosmetic updates but structurally sound.

What's the cheapest livable house budget in London as of 2026?

As of early 2026, the minimum budget for a livable house in London is around £400,000 to £475,000 (roughly $540,000 to $640,000, or €460,000 to €545,000), though you will need to be flexible on location and condition.

At this entry-level price point in London, "livable" typically means a small 2-bedroom terraced house or a compact 2-to-3-bedroom property that is structurally sound but likely needs cosmetic updates like a new kitchen, bathroom refresh, or redecoration.

These cheapest livable houses in London are usually found in outer east and southeast boroughs such as Barking, Dagenham, Becontree, Thamesmead, Erith, and some pockets of Croydon like Thornton Heath.

Wondering what you can get? We cover all the buying opportunities at different budget levels in London here.

How much do 2 and 3-bedroom houses cost in London as of 2026?

As of early 2026, a typical 2-bedroom house in London costs around £550,000 to £650,000 (roughly $740,000 to $880,000, or €630,000 to €750,000), while a 3-bedroom house typically costs £700,000 to £900,000 (about $945,000 to $1,215,000, or €805,000 to €1,035,000).

The realistic price range for a 2-bedroom house in London stretches from about £475,000 in outer boroughs like Barking or Bexley to £900,000 in well-connected Zone 2 and 3 areas like Clapham or Hackney.

For a 3-bedroom house in London, the realistic range runs from around £600,000 in outer London areas like Havering or Croydon up to £1,050,000 or more in popular family neighborhoods like Balham, Dulwich, or Walthamstow.

The typical price premium when moving from a 2-bedroom to a 3-bedroom house in London is around £150,000 to £250,000, which reflects the strong demand from families who need that extra room and are willing to pay significantly more for it.

How much do 4-bedroom houses cost in London as of 2026?

As of early 2026, a typical 4-bedroom house in London costs around £1,000,000 to £1,400,000 (roughly $1,350,000 to $1,890,000, or €1,150,000 to €1,610,000), with prices varying significantly by location and condition.

The realistic price range for a 5-bedroom house in London runs from around £1,400,000 in outer suburbs like Bromley or Harrow up to £2,500,000 or more in prime family areas like Richmond, Wimbledon, or Hampstead.

For a 6-bedroom house in London, expect to pay anywhere from £1,800,000 in the outer boroughs to well over £3,500,000 in central and prime locations, where properties of this size are genuinely rare.

Please note that we give much more detailed data in our pack about the property market in London.

How much do new-build houses cost in London as of 2026?

As of early 2026, a typical new-build house in London costs around £900,000 to £1,400,000 (roughly $1,215,000 to $1,890,000, or €1,035,000 to €1,610,000), though new-build houses are relatively scarce since most London new-build supply consists of flats.

The typical percentage premium that new-build houses carry compared to older resale houses in London is around 10% to 20%, which reflects the value buyers place on modern systems, better insulation, lower maintenance, and often better layouts with parking.

How much do houses with land cost in London as of 2026?

As of early 2026, a house with meaningful land in London (such as a large garden, side access, or a driveway) typically costs 15% to 30% more than a similar house without these features, pushing typical prices into the £1,000,000 to £1,800,000 range (roughly $1,350,000 to $2,430,000, or €1,150,000 to €2,070,000).

In London, a "house with land" usually means a property with a garden larger than 15 meters deep, genuine side access or space to extend, or a driveway for off-street parking, which is a premium feature in the city where parking is notoriously difficult.

Where are houses cheapest and most expensive in London as of 2026?

Which neighborhoods have the lowest house prices in London as of 2026?

As of early 2026, the neighborhoods with the lowest house prices in London include Barking, Dagenham, Becontree, Erith, Belvedere, Thamesmead, Abbey Wood, parts of East Ham, and some pockets of Croydon like Thornton Heath.

The typical house price range in these cheapest London neighborhoods is around £400,000 to £550,000 (roughly $540,000 to $740,000, or €460,000 to €630,000), which is well below the London-wide average.

The main reason these neighborhoods have the lowest house prices in London is a combination of longer commute times to central employment hubs, historically lower investment in local amenities, and in some cases ongoing regeneration that has not yet fully materialized into price increases.

Which neighborhoods have the highest house prices in London as of 2026?

As of early 2026, the three neighborhoods with the highest house prices in London are Knightsbridge and Belgravia, Kensington and Chelsea, and Hampstead, where houses routinely sell for seven or eight figures.

The typical house price range in these most expensive London neighborhoods starts at around £2,000,000 and can exceed £10,000,000 (roughly $2,700,000 to $13,500,000 or more, or €2,300,000 to €11,500,000 or more), with prime townhouses and period properties often trading far higher.

The main reason these neighborhoods command the highest house prices in London is their combination of historic architecture, proximity to Hyde Park and other green spaces, excellent private schools, and a concentration of global wealth seeking trophy assets in a politically stable city.

The type of buyer who typically purchases houses in these premium neighborhoods includes international ultra-high-net-worth individuals, senior finance and tech executives, family offices seeking long-term wealth preservation, and multigenerational British families upgrading within established communities.

How much do houses cost near the city center in London as of 2026?

As of early 2026, a house near the city center of London (areas like Westminster, Marylebone, Fitzrovia, and the City fringes) typically costs between £1,500,000 and £4,000,000 (roughly $2,025,000 to $5,400,000, or €1,725,000 to €4,600,000), with prime streets and larger period houses exceeding £5,000,000.

Houses near major transit hubs in London, such as Stratford (Elizabeth line), Clapham Junction (Overground and National Rail), or Canary Wharf, typically cost around £700,000 to £1,200,000 (roughly $945,000 to $1,620,000, or €805,000 to €1,380,000), with a premium of around 5% to 10% for being within walking distance of a station.

Houses near top-rated schools in London, such as the catchments for Queen Elizabeth's School in Barnet (state) or near independent schools like St Paul's in Barnes or Godolphin and Latymer in Hammersmith, typically cost 5% to 15% more than comparable properties nearby, pushing family houses in these areas into the £1,000,000 to £2,500,000 range.

Houses in expat-popular areas of London, such as Kensington, Chelsea, Notting Hill, Richmond, and Wimbledon, typically cost between £1,200,000 and £4,000,000 or more (roughly $1,620,000 to $5,400,000, or €1,380,000 to €4,600,000), reflecting strong international demand for safe, well-connected neighborhoods with good schools and amenities.

We actually have an updated expat guide for London here.

How much do houses cost in the suburbs in London as of 2026?

As of early 2026, a typical house in the suburbs of London (Zones 4 to 6, including boroughs like Bromley, Harrow, Havering, and Barnet) costs around £600,000 to £1,000,000 (roughly $810,000 to $1,350,000, or €690,000 to €1,150,000).

The typical price difference between suburban houses and city-center houses in London is around 40% to 60% lower, meaning you can often get a larger house with a garden and parking in the suburbs for what you would pay for a small terraced house in Zone 2.

The most popular suburbs for house buyers in London include Bromley (for green space and good schools), Harrow and Hillingdon (for value and transport links), Barnet (for families wanting suburban feel near good state schools), and Richmond and Wimbledon (for those with bigger budgets seeking village atmosphere).

What areas in London are improving and still affordable as of 2026?

As of early 2026, the top areas in London that are improving and still relatively affordable for house buyers include Woolwich and Abbey Wood (boosted by the Elizabeth line), Barking Riverside (large-scale regeneration), Tottenham Hale (ongoing redevelopment), and Deptford and New Cross (spillover demand from pricier neighbors).

The current typical house price in these improving yet affordable London areas is around £450,000 to £650,000 (roughly $610,000 to $880,000, or €520,000 to €750,000), which is significantly below the London-wide average.

The main sign of improvement driving buyer interest in these areas is the arrival of major new transport infrastructure, particularly the Elizabeth line, which has dramatically cut commute times to central London and brought new retail, restaurants, and services to previously underserved neighborhoods.

By the way, we've written a blog article detailing what are the current best areas to invest in property in London.

What extra costs should I budget for a house in London right now?

What are typical buyer closing costs for houses in London right now?

The estimated typical total closing cost for house buyers in London is around 3% to 7% of the purchase price, depending heavily on how much Stamp Duty Land Tax you owe, which is the single largest component.

The main closing cost categories in London include Stamp Duty Land Tax (often £15,000 to £50,000 or more for typical London house prices, roughly $20,000 to $67,500 or €17,000 to €57,500), solicitor and conveyancing fees (around £1,500 to £3,000 or $2,000 to $4,000 or €1,700 to €3,450), survey fees (£400 to £1,500 or $540 to $2,000 or €460 to €1,700), and mortgage arrangement and valuation fees (varying from a few hundred to a couple thousand pounds).

The single closing cost category that is usually the largest for house buyers in London is Stamp Duty Land Tax (SDLT), which can easily reach £25,000 or more on a typical £750,000 house purchase, making it by far the most significant upfront expense after your deposit.

We cover all these costs and what are the strategies to minimize them in our property pack about London.

How much are property taxes on houses in London right now?

The estimated typical annual property tax (council tax) for a house in London is around £1,500 to £2,500 per year (roughly $2,000 to $3,400, or €1,700 to €2,900), depending on the borough and the property's council tax band.

Council tax in London is calculated based on the valuation band your property falls into (Bands A through H, based on 1991 property values) and the rate set by your local borough council, with the average Band D council tax across England for 2025 to 2026 being around £2,280 per year.

If you want to go into more details, we also have a page with all the property taxes and fees in London.

How much is home insurance for a house in London right now?

The estimated typical annual home insurance cost for buildings coverage on a house in London is around £300 to £600 (roughly $400 to $810, or €345 to €690), though this can be higher for properties with high rebuild values, flood risk, or prior claims history.

The main factors that affect home insurance premiums for houses in London include the property's rebuild cost (which is often high in London), its location and flood risk (some riverside and low-lying areas pay more), the age and construction type of the house, and your claims history.

What are typical utility costs for a house in London right now?

The estimated typical total monthly utility cost for a house in London is around £150 to £200 (roughly $200 to $270, or €170 to €230), based on the Ofgem price cap of £1,758 per year for a typical dual-fuel household.

The breakdown of main utility categories for a house in London includes gas and electricity (around £145 per month or $195 or €165 under the current price cap), water and sewerage (around £35 to £50 per month or $47 to $67 or €40 to €57), and broadband and phone (around £30 to £50 per month or $40 to $67 or €35 to €57).

What are common hidden costs when buying a house in London right now?

The estimated total of common hidden costs that house buyers in London often overlook is around £5,000 to £20,000 (roughly $6,750 to $27,000, or €5,750 to €23,000), depending on the property's age and condition.

Typical inspection fees (survey costs) buyers should expect when purchasing a house in London range from around £400 for a basic Level 2 HomeBuyer Report to £1,500 or more for a full Level 3 Building Survey on an older or larger property.

Other common hidden costs beyond inspections when buying a house in London include immediate repairs flagged by the survey (roof, damp, electrics, drainage), old-house upgrades (insulation, heating systems, windows), party wall agreements if you plan to extend (common with terraced houses), and higher-than-expected maintenance costs for period properties like Victorian and Edwardian terraces.

The hidden cost that tends to surprise first-time house buyers the most in London is the expense of bringing an older property up to modern energy efficiency standards, including new boilers or heat pumps, double glazing, and insulation, which can easily add £10,000 to £30,000 to your budget in the first few years.

You will find here the list of classic mistakes people make when buying a property in London.

What do locals and expats say about the market in London as of 2026?

Do people think houses are overpriced in London as of 2026?

As of early 2026, the general sentiment among locals and expats is that London houses are overpriced relative to incomes, but that well-located properties with good transport links and school catchments remain resilient and justify their prices to committed buyers.

Houses in London typically stay on the market for around 4 to 10 weeks if priced correctly, though overpriced or highly specific properties can linger for 3 months or more as buyers have more choice than in recent years.

The main reason locals and expats give for feeling house prices are too high in London is the stark affordability gap, where even dual-income professional households struggle to afford family houses without significant deposits or family help, while those who feel prices are fair point to genuine supply constraints and global demand for London property.

Compared to one or two years ago, sentiment on London house prices has shifted from frustration about rapid price rises to cautious acceptance of a more stable but still expensive market, with buyers feeling they have more negotiating power and choice than during the post-pandemic frenzy.

You'll find our latest property market analysis about London here.

Are prices still rising or cooling in London as of 2026?

As of early 2026, house prices in London are closer to flat or slightly cooling than rising strongly, with official data showing London underperforming most other UK regions due to affordability constraints and higher stamp duty costs.

The estimated year-over-year house price change in London is around negative 0.5% to positive 1%, depending on the index and property type, with Zoopla reporting London prices down around 0.7% over 2025 while some outer boroughs posted small gains.

Experts and locals expect house prices in London over the next 6 to 12 months to remain broadly stable with modest growth of around 1% to 2%, supported by improving mortgage affordability as interest rates ease, but held back by ongoing affordability pressures and higher transaction costs.

Finally, please note that we have covered property price trends and forecasts for London here.

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.