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
What do the latest numbers reveal about London’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in London, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) Properties sold in North London increased by 5% in 2024
In 2024, the number of properties sold in North London increased by 5%.
Yet, if you dive into the data from Plumplot, you'll find a different picture. From December 2023 to November 2024, there were 6,000 property sales in North London. This figure actually represents a decrease of 1,800 transactions compared to the previous period, translating to a 21.5% drop in sales volume.
So, contrary to the initial claim, the number of properties sold in North London did not increase by 5% but rather saw a decline. The data clearly contradicts the notion of a rise in property sales for that year.
Source: Plumplot
2) The average size of a London apartment is now 700 square feet
The average size of a London apartment is now 700 square feet.
In recent years, particularly in 2023 and 2024, London apartments have been noticeably smaller compared to other parts of England. This is mainly because of the city's high demand for housing, which has pushed prices up, making larger spaces a luxury for many.
With these market conditions, both developers and homebuyers have had to adjust, often choosing smaller living spaces that align with their financial limits. This shift is part of a larger trend seen across England, where London consistently reports smaller average home sizes than other regions.
Sources: Yeshomebuyers
We have made this infographic to give you a quick and clear snapshot of the property market in the UK. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) A semi-detached house in London costs an average of £800,000
The average cost of a semi-detached house in London is £800,000.
Prices vary widely across London, with areas like Kensington and Chelsea boasting some of the priciest properties, while places like Camden have seen a dip. This mix of high and low prices helps shape the overall average.
Looking ahead, experts from Rightmove and Zoopla predict that by 2025, house prices in London will generally rise. This expected increase will naturally impact the cost of semi-detached homes.
Several factors influence these prices, including mortgage rates and changes in stamp duty. These financial elements are crucial in determining how much buyers are willing to pay.
Demand is another key player. As more people look to buy in London, the competition for properties intensifies, pushing prices up.
All these factors create a dynamic market where the average cost of a semi-detached house can easily hit £800,000.
Sources: Statista, Evening Standard, Zoopla
4) By 2025, 50% of London properties are sold to mortgage buyers
In 2025, the London property market is buzzing with activity, driven by increased buyer interest and sales agreements.
One key factor is that mortgage rates are at their lowest in 15 months, making it a prime time for buyers to secure financing. This drop in rates has made mortgages more appealing, encouraging more people to consider buying property.
The market is also seeing a surge in transactions, with around 1.15 million deals expected to close this year. This uptick aligns with stable or slightly rising property prices in London, reflecting broader national trends.
Changes in stamp duty tax are adding urgency to the mix. Buyers are keen to act quickly to avoid higher charges, which often means opting for a mortgage to speed up the process.
All these elements create a scenario where getting a mortgage is a practical choice for many, leading to the fact that half of London properties are sold to buyers with a mortgage in 2025.
Sources: Benhams, Evening Standard, JLL Residential
5) Properties sold in East London rose by 11% in 2024
In 2024, the number of properties sold in East London increased by 11%.
London's real estate market was buzzing with high demand and limited supply, a common scenario that often boosts sales. This was especially true in East London, where eager buyers were snapping up properties in a competitive market.
Regional price differences also played a part. For instance, areas like Barking and Dagenham, and Croydon saw a 7% rise in house prices year-on-year. This trend suggested a growing interest in more affordable regions, likely drawing more buyers to East London.
East London became a hotspot for those seeking value, as the affordability of certain areas attracted a wave of new buyers. This influx contributed to the overall increase in property sales.
Buyers were particularly interested in East London due to its proximity to central London and emerging local amenities, making it a desirable location for both investors and families.
As a result, the real estate market in East London thrived, with increased activity and competition among buyers, further driving up sales numbers.
Sources: Property24, Real Estate Agents London
Get to know the market before you buy a property in London
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) The average property cost in Central London is £1.5 million
The average cost of a property in Central London is £1.5 million.
In recent years, experts like Savills and Knight Frank observed shifts in the fiscal and regulatory landscape, initially causing a slight dip in prices. However, they foresaw a rebound, driven by needs-based buyers and lower mortgage costs, indicating a market poised for recovery.
Hamptons and Statista also weighed in with forecasts, predicting a steady rise in property values. Hamptons anticipated a 4% growth in London by 2025, while Statista projected a 16.4% increase in prime residential real estate prices from 2024 to 2028, underscoring a long-term upward trend.
Rightmove added to this outlook, expecting a 4% rise in house prices across the UK, with London at the forefront. This surge is partly attributed to the return of full-time office work, boosting demand and contributing to the high average property cost in Central London.
These insights collectively paint a picture of a resilient market, where Central London's property prices are not just recovering but are on a path to growth, supported by various economic and social factors.
Sources: Country Life, Statista, Greater London Properties
7) Properties sold in Greater London rose by 9% in 2024
In 2024, property sales in Greater London jumped by 9% compared to the previous year.
This surge was fueled by a mix of economic recovery and enticingly low interest rates. As the economy bounced back, people felt more secure about making big investments like buying a home. With borrowing costs down, thanks to low interest rates, more buyers were drawn into the market, eager to take advantage of cheaper loans.
Demand for housing also played a crucial role. As more folks looked to buy, competition among buyers intensified, naturally boosting sales numbers. This spike in demand might have been driven by shifts in lifestyle choices or even a growing population in the area.
Interestingly, not all areas in Greater London saw the same level of activity. Some neighborhoods experienced more pronounced increases in property sales, possibly due to local developments or attractive amenities that made them stand out.
These regional differences highlight how local factors can influence the property market. Whether it's a new park, better schools, or improved transport links, such amenities can make certain areas more appealing, driving up sales.
Source: Zoopla UK Property Market Report
8) The average property cost in Outer London is £500,000
The average cost of a property in Outer London is £500,000.
In recent years, property values in Outer London have been on the rise. From 2023 to 2024, the prime residential real estate market was expected to grow significantly, with a cumulative increase of over 15% projected until 2028. This steady climb in property values is a key factor in the current average cost.
As of January 2025, the average house price in London, encompassing both central and outer areas, was £519,579. However, Outer London typically has slightly lower prices compared to central areas, which helps explain the £500,000 figure for Outer London properties.
Regional property price trends have shown that London's growth is either on par with or slightly ahead of national trends. This supports the idea that property values in Outer London are consistently rising, aligning with broader market movements.
These trends highlight the dynamic nature of the Outer London property market, where prices are influenced by both local and national factors. The slightly lower prices in Outer London compared to central areas make it an attractive option for potential buyers looking for value.
Sources: Statista, NerdWallet
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.
9) Properties sold in South London increased by 10% in 2024
In 2024, property sales in South London jumped by 10%.
This surge was part of a broader trend, as Prime Central London saw transaction levels rise by nearly 9% compared to the previous year. Such activity across the city likely had a ripple effect, boosting interest in South London properties.
While specific figures for South London weren't detailed, other areas like Hackney and Victoria Park experienced notable growth in house prices. This suggests that demand was heating up in various parts of London, possibly including South London.
Market dynamics were influenced by factors like mortgage rates and buyer preferences. Despite economic challenges, domestic demand remained high, and international buyers showed keen interest, which helped improve market conditions.
These elements combined to create a favorable environment for property sales. Buyers were drawn to South London due to its appealing mix of affordability and accessibility, making it a hot spot in the bustling London market.
Overall, the increase in property sales in South London was part of a larger trend of rising market activity across the city, driven by a mix of local and international interest.
Sources: Black Brick, Daniel Cobb, Zoopla, Savills
10) By 2025, international buyers will purchase 20% of London properties
In 2025, 20% of London properties are purchased by international buyers.
Back in 2023, there was a noticeable shift in the property market of Prime Central London. Overseas purchases jumped from 39% in 2022 to 45% in 2023, showing a renewed interest from international investors. This was despite the challenges posed by the COVID-19 pandemic and the introduction of a 2% stamp duty surcharge in April 2024.
Rightmove's forecast for 2025 painted a promising picture for the London property market. They predicted that house prices across London and the UK would rise, driven by falling mortgage rates and a surge in first-time buyer activity. These factors made London an attractive option for international buyers seeking stable and potentially lucrative investments.
The UK property market remained fiercely competitive, with a high number of available homes and strong competition among sellers. This dynamic environment likely fueled the interest from international buyers, eager to seize the opportunities presented by these market conditions.
International buyers were particularly drawn to the stability and potential returns of the London market. The combination of favorable mortgage rates and a competitive market created a perfect storm for those looking to invest in property.
Sources: Hamptons, Evening Standard, Buy Association
11) The average property cost in London boroughs is £550,000
The average cost of a property in the London boroughs is £550,000.
In 2023, London saw a remarkable surge in house prices, with a 78% increase from 2012 to 2022. This upward trend didn't stop there; it continued into 2024, pushing property prices to their current levels. The growth has been uneven across different boroughs, with some areas experiencing more rapid increases than others.
Outer London areas have generally shown more consistent growth compared to Inner London. For example, Barking & Dagenham has seen strong price growth, while Richmond upon Thames has experienced slower increases. This variation in growth rates across boroughs influences the overall average, with some areas driving prices up and others keeping them more moderate.
Affordability remains a significant challenge, especially for first-time buyers who face high deposit requirements averaging £144,000. Although there have been some improvements due to wage growth and lower interest rates, the issue persists. In Barking and Dagenham, homes are priced at £338,000, which is below the London average, but these lower prices are offset by much higher prices in other boroughs.
Despite these challenges, the London property market continues to attract buyers, driven by its dynamic economy and diverse opportunities. The disparity in property prices across boroughs means that while some areas offer more affordable options, others remain exclusive and expensive.
Understanding these trends and variations is crucial for anyone considering buying property in London, as it highlights the importance of location and timing in making a sound investment.
Sources: LandTech, Evening Standard
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.