House Prices in London
Explore the London property market with the latest house prices, sold-price trends, asking rents and rental yields. Compare property values across the capital and discover insights into London's housing, population and neighbourhoods, whether you are buying a home, researching an area or simply want to understand the market.
Latest sold-price evidence
The average sold price is £636,493 in the 12 months to September 2026. Price change before inflation is -4.0% over one year, +0.1% over five years and +13.6% over ten years. After inflation, the corresponding changes are -7.1%, -21.9% and -20.3%. REalm BI Housing Price Index.
London house prices at a glance
- Average sold price: £636,493 (12 months to September 2026, REalm BI Housing Price Index)
- Cheapest property type: flats and maisonettes at £510,450 on average
- Detached homes: £1,270,000 on average
- Average asking rent: £2,721 per month (REalm BI listing research)
- Average gross rental yield: 5.2%, ranging from 3.3% to 6.9% by borough
London property market overview
The average sold price is £636,493 in the 12 months to September 2026. Price change before inflation is -4.0% over one year, +0.1% over five years and +13.6% over ten years. After inflation, the corresponding changes are -7.1%, -21.9% and -20.3%. REalm BI Housing Price Index.
Central London typically has the highest property values and a greater concentration of flats and apartments, while outer London generally offers a wider choice of family houses and suburban communities. London house prices should always be considered at borough and neighbourhood level rather than through a single city-wide average.
| Property type | Average sold price |
|---|---|
| Flat / maisonette | £510,450 |
| Terraced | £777,533 |
| Semi-detached | £781,000 |
| Detached | £1,270,000 |
House prices in London today
London house prices have softened over the past year, with sold prices lower than the previous 12 months. Buyers have faced stretched affordability after several years of higher mortgage costs, while changes to Stamp Duty thresholds in 2025 increased upfront buying costs for some purchasers.
Despite weaker prices, London remains one of the UK's most active housing markets. Sold prices on this page come from the REalm BI Housing Price Index.
Renting and rental yields in London
London's rental market remains large and highly active, with average asking rents of approximately £2,721 per month across the capital.
Gross rental yields average around 5.2% across the capital, with borough-level yields ranging from approximately 3.3% to 6.9%. Asking prices and rents are taken from REalm BI research of estate agent listings across London, not from the Housing Price Index.
London prices, rents and yields by bedroom count
| Property size | Average asking price | Average rent pcm | Gross yield |
|---|---|---|---|
| 1 bedroom | £334,872 | £1,932 | 6.9% |
| 2 bedrooms | £631,874 | £2,636 | 5.0% |
| 3 bedrooms | £800,296 | £3,630 | 5.4% |
| 4 bedrooms | £889,018 | £4,532 | 6.1% |
| 5+ bedrooms | £1,102,062 | £7,111 | 7.7% |
People and homes in London
London has an estimated population of around 9.1 million people and is one of the UK's most diverse places to live. At the 2021 Census, 46.7% of residents aged 16 and over held a Level 4 qualification or above, and around 79.8% of working-age Londoners are economically active.
Around 30.0% of households rented privately and 23.1% lived in social rented housing at the 2021 Census. Tenure, property type and house prices differ considerably between boroughs.
What buyers should consider
Asking prices are not completed sale prices. Buyers should compare an individual property's asking price with recent nearby sales, while also considering tenure, lease length, service charges, property condition and the immediate neighbourhood before deciding what a home is worth.