House Prices in London

London Property Market Overview

London's property market remains one of the most dynamic and expensive in the UK, with average prices significantly outpacing the rest of the country. The capital's diverse economy, world-renowned schools, and international appeal continue to drive demand despite the high entry cost. Average property prices across all types now sit around £500,000, though this figure masks enormous variation between boroughs and property types.

The detached housing market in London tells a particular story of scarcity and premium demand. With an average price of £700,000, detached homes represent the pinnacle of the London property ladder for many buyers. These properties are concentrated in areas like Richmond, Wimbledon, Hampstead, and the premium postcodes of SW and W London. The limited supply of land within the Greater London boundary means detached properties hold their value remarkably well, even during market downturns.

The London flat market is characterised by huge variation. At £400,000 on average, flats represent the most accessible entry point to London property ownership, but this figure hides significant variation. Premium developments in zones 1 and 2 can command £1 million-plus for two-bedroom apartments, while outer boroughs offer more affordable options. The cladding crisis following the Grenfell Tower tragedy has affected flat values in some newer developments, with leaseholders facing significant remediation costs.