The monthly house price index in London has increased since 2015, albeit with fluctuation. In May 2025, the index reached 99.1, which is a slight increase from the same month in 2024. Nevertheless, prices widely varied in different London boroughs, with Kensington and Chelsea being the priciest boroughs for an apartment purchase.

According to the forecast, house prices in London are expected to continue to increase until 2029. During the five-year period from 2025 to 2029, the house prices for mainstream properties are forecast to rise by **** percent. In 2023, the average house price in London ranged between ******* British pounds and *** million British pounds, depending on the borough. Barking and Dagenham, Bexley, Newham, and Croydon were some of the most affordable boroughs to buy a house.

Prices for prime residential real estate in Central London were expected to decline slightly in 2024, followed by a gradual increase until 2028, according to a *********** forecast. During the five-year period, the prices are forecast to rise by **** percent. In comparison, regional prime property prices and Outer London prime property prices are forecast to grow at a lower rate.

Housing Index in the United Kingdom decreased to 514.20 points in September from 515.60 points in August of 2025. This dataset provides - United Kingdom House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

After a period of rapid increase, house price growth in the UK has moderated. In 2025, house prices are forecast to increase by ****percent. Between 2025 and 2029, the average house price growth is projected at *** percent. According to the source, home building is expected to increase slightly in this period, fueling home buying. On the other hand, higher borrowing costs despite recent easing of mortgage rates and affordability challenges may continue to suppress transaction activity. Historical house price growth in the UK House prices rose steadily between 2015 and 2020, despite minor fluctuations. In the following two years, prices soared, leading to the house price index jumping by about 20 percent. As the market stood in April 2025, the average price for a home stood at approximately ******* British pounds. Rents are expected to continue to grow According to another forecast, the prime residential market is also expected to see rental prices grow in the next five years. Growth is forecast to be stronger in 2025 and slow slightly until 2029. The rental market in London is expected to follow a similar trend, with Outer London slightly outperforming Central London.

The house price index in London reached 99.1 index points in May 2025, which was an increase of 2.2 percent year on year. The house price index (HPI) is an easy way of illustrating trends in the house sales market and help simplify house purchase decisions. By using hedonic regression, the index models property price data for all dwellings and shows how much the price has changed since January 2023. Average house prices in Londnon boroughs Location plays a huge role in the price of a home. Kensington and Chelsea and City of Westminster are undoubtedly the most expensive boroughs in London, with an average house price that can exceed one million British pounds. In comparison, a house in Barking and Dagenham cost approximately one third. Nevertheless, the housing market is the busiest in the boroughs with average house prices. How have regional house prices in the UK developed? House prices in other UK regions have risen even more than in London. In Northern Ireland, the house price index reached nearly 120 index points in May 2025, ranking it among the regions with the highest property appreciation. The UK house price index stood at 103 index points, suggesting an increase of 51 percent since 2015.

The UK housing market continued to show significant regional variations in 2025, with London maintaining its position as the most expensive city for homebuyers. The average house price in the capital stood at 555,625 British pounds in February, nearly double the national average. However, the market dynamics are shifting, with London experiencing only a modest 1.7 percent annual increase, while other cities like Belfast and Liverpool saw more substantial growth of over nine percent respectively. Affordability challenges and market slowdown Despite the continued price growth in many cities, the UK housing market is facing headwinds. The affordability of mortgage repayments has become the biggest barrier to property purchases, with the majority of the respondents in a recent survey citing it as their main challenge. Moreover, a rising share of Brits have reported affordability as a challenge since 2021, reflecting the impact of rising house prices and higher mortgage rates. The market slowdown is evident in the declining housing transaction volumes, which have plummeted since 2021. European context The stark price differences are mirrored in the broader European context. While London boasts some of the highest property prices among European cities, a comparison of the average transaction price for new homes in different European countries shows a different picture. In 2023, the highest prices were found in Austria, Germany, and France.

Summary of UK House Price Index (HPI) price statistics covering England, Scotland, Wales and Northern Ireland. Full UK HPI data are available on GOV.UK.

The average house price decreased year-on-year in 12 of London's boroughs as of May 2025 amid a slowdown in the UK housing market. Barking and Dagenham was the most affordable borough to buy a house, with an average price of ******* British pounds. Kensington and Chelsea stood at the other end of the spectrum, with an average price of ****million British pounds. Demand for housing and house prices With vastly more job and cultural opportunities, megacities continue attracting people from all over the world. Since the beginning of the 1980s, the population of London has increased by more than 2 million inhabitants and in the next 20 years, it is forecast to increase by almost *** million. That makes London properties a valuable asset. Historically, property prices in London have risen steadily, albeit with minor fluctuations. Residential properties transactions Since 2006, the number of residential property sales has varied between *** million and *** million transactions annually. The housing boom in 2021 led to an increase in home purchases, but the economic uncertainty, stubborn inflation, and dramatically higher interest rates have led to transactions falling.

Graph and download economic data for Residential Property Prices for United Kingdom (QGBN628BIS) from Q2 1968 to Q2 2025 about United Kingdom, residential, HPI, housing, price index, indexes, and price.

Graph and download economic data for All-Transactions House Price Index for Norwich-New London, CT (MSA) (ATNHPIUS35980Q) from Q3 1985 to Q2 2025 about Norwich, CT, appraisers, HPI, housing, price index, indexes, price, and USA.

The prime property rental real estate market in Outer London is expected to see an overall increase in rental rates during the ********* period between 2025 and 2029. Over the ********* period, the cumulative prime rental growth is forecast at **** percent. Nationwide, residential rents have soared since 2021, with the annual rental growth peaking at over **** percent in **********.

The UK House Price Index (UK HPI) captures changes in the value of residential properties. The UK HPI uses sales data collected on residential housing transactions, whether for cash or with a mortgage. For more information, please read the Land Registry's documentation: https://www.gov.uk/government/publications/about-the-uk-house-price-index/about-the-uk-house-price-index From February 2025, the UK House Price Index has been re-referenced from January 2015 to January 2023. Historical data from 1995 onwards has also been revised to align with this update. These changes reflect market shifts, including an increase in sales of smaller properties and fewer sales in higher-value areas like London. For more details, see the UK HPI publication for more information - https://www.gov.uk/government/collections/uk-house-price-index-reports

Affordability ratios calculated by dividing house prices by gross annual residence-based earnings. Based on the median and lower quartiles of both house prices and earnings in England and Wales.

🇬🇧 영국 English The UK House Price Index (UK HPI) captures changes in the value of residential properties. The UK HPI uses sales data collected on residential housing transactions, whether for cash or with a mortgage. For more information, please read the Land Registry's documentation: https://www.gov.uk/government/publications/about-the-uk-house-price-index/about-the-uk-house-price-index From February 2025, the UK House Price Index has been re-referenced from January 2015 to January 2023. Historical data from 1995 onwards has also been revised to align with this update. These changes reflect market shifts, including an increase in sales of smaller properties and fewer sales in higher-value areas like London. For more details, see the UK HPI publication for more information - https://www.gov.uk/government/collections/uk-house-price-index-reports

Renters in the UK spent on average 32.5 percent of their income on rent as of January 2025. Scotland and Yorkshire and Humber were the most affordable regions, with households spending less than 28 percent of their gross income on rent. Conversely, London, South West, and South East had a higher ratio. Greater London is the most expensive region for renters Greater London has a considerably higher rent than the rest of the UK regions. In 2024, the average rental cost in Greater London was more than twice higher than in the North West or West Midlands. Compared with Greater London, rent in the South East region was about 600 British pounds cheaper. London property prices continue to increase In recent years, house prices in the UK have been steadily increasing, and the period after the COVID-19 pandemic has been no exception. Prime residential property prices in Central London are forecast to continue rising until 2027. A similar trend in prime property prices is also expected in Outer London.

The UK real estate services industry, valued at approximately £32.45 billion in 2025, is projected to experience steady growth, with a compound annual growth rate (CAGR) of 3.00% from 2025 to 2033. This growth is driven by several key factors. Firstly, the ongoing demand for both residential and commercial properties in major UK cities like London, Manchester, and Birmingham fuels the property management and valuation segments. Secondly, increasing urbanization and population growth contribute to a sustained need for property services. Thirdly, technological advancements, such as proptech solutions for property search and management, are streamlining operations and improving efficiency within the sector. The market is segmented by property type (residential, commercial, other) and service type (property management, valuation, other services). While residential properties currently dominate the market, the commercial sector is also experiencing significant growth, particularly in areas with strong economic activity. Key players such as Hammerson, British Land, and Rightmove are well-positioned to capitalize on these trends. However, challenges remain, including economic uncertainty, fluctuations in interest rates impacting investment, and regulatory changes influencing property transactions. The industry's resilience will be tested by navigating these challenges while capitalizing on the long-term growth opportunities presented by the UK’s evolving real estate landscape. The regional distribution of the UK real estate services market reflects the concentration of economic activity and population density. London and the South East are expected to maintain a significant market share, owing to their high property values and demand. However, other regions, particularly those experiencing population growth and infrastructure development, are anticipated to show considerable growth potential. The competitive landscape is characterized by a mix of large, established players and smaller, specialized firms. The presence of prominent players across various segments – from property developers (Berkeley Group) to REITs (Tritax Big Box) and housing associations (Bridgewater Housing) – highlights the industry's diverse structure and the opportunities for various business models. The forecast period will see ongoing consolidation and the emergence of innovative business models, particularly within the proptech sector. This dynamic environment requires agile strategies and adaptive business models to succeed in this evolving market. Recent developments include: January 2023: United Kingdom Sotheby's Property Business Acquired by the Dubai Branch of Sotheby's. UK Sotheby International Realty was previously owned by Robin Paterson, who sold the business to his business partner and affiliate, George Azar. George Azar currently holds and operates Sotheby's Dubai and the MENA region., November 2022: JLL identified a shortage of quality rental homes as a long-term problem for the UK, which the recent boom in rentals has accentuated. This unmet need for quality rental homes has led to continued investor interest in purpose-built rental properties in UK city centers. JLL reported that annual investment in UK living real estate reached £10bn (USD 12.73 bn) in Q3 2022, setting living on track for another record year.. Key drivers for this market are: Improvements in Infrastructure and New Development, Population Growth and Demographic Changes. Potential restraints include: Housing Shortages, Increasing Awareness towards Environmental Issues. Notable trends are: Increasing in the United Kingdom House Prices.

The European residential real estate market, valued at €1.95 trillion in 2025, is projected to experience steady growth, exhibiting a compound annual growth rate (CAGR) of 4.5% from 2025 to 2033. This growth is driven by several key factors. Increasing urbanization across major European cities like London, Paris, and Berlin fuels demand for apartments and condominiums. A growing population, coupled with rising disposable incomes in several European countries, particularly in Western Europe, further boosts demand for housing, particularly in the higher-end villa and landed house segments. Government initiatives aimed at affordable housing in some regions also contribute to market activity, though this effect varies significantly across different nations. However, the market faces constraints such as fluctuating interest rates influencing mortgage affordability and the ongoing impact of economic uncertainty affecting investor confidence. The market is segmented geographically, with the United Kingdom, Germany, and France representing the largest national markets, showcasing diverse dynamics within each country based on local economic conditions and government policies. The strong performance of the UK market is primarily attributed to its robust economy and concentration of high-value properties in London. Germany, on the other hand, is characterized by a more balanced market spread across different property types, with solid growth driven by sustained economic activity and population growth in major cities. France's market reflects a mix of urban and suburban development, demonstrating a dynamic interplay between high-demand urban centers and more affordable suburban options. Major players like CPI Property Group, Aroundtown Property Holdings, and LEG Immobilien AG shape market trends through their development and investment activities. The long-term outlook remains positive, though subject to global economic fluctuations and national-specific regulatory changes. The competitive landscape is characterized by a mix of large publicly listed REITs and privately held companies. These companies compete based on their portfolio strategies, development capabilities, and financial strength. The future of the European residential real estate market will likely see a continued focus on sustainable development practices, technological advancements impacting property management, and a greater emphasis on meeting the needs of a diverse population with varying housing preferences. The varied regulatory frameworks across Europe necessitate a nuanced approach for developers and investors to successfully navigate the market dynamics in each specific country. Further growth will be influenced by demographic shifts, technological advancements, and evolving consumer preferences concerning sustainable and smart living environments. This comprehensive report provides an in-depth analysis of the European residential real estate market, covering the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, this report offers valuable insights into market trends, key players, and future growth opportunities within the European residential real estate sector. It includes detailed analysis of condominiums, apartments, villas, and landed houses across major markets like Germany, the United Kingdom, France, and the rest of Europe. This report is crucial for investors, developers, policymakers, and anyone seeking to understand this dynamic and rapidly evolving market.
Keywords: European residential real estate market, real estate market trends Europe, European property market, residential real estate investment Europe, Germany real estate market, UK property market, France real estate market, European real estate forecast, real estate market analysis Europe, PropTech Europe Recent developments include: November 2023: DoorFeed, a Proptech company, raised EUR 12 million (USD 13.24 million) in seed funding, led by Motive Ventures and Stride and supported by renowned investors, including Seedcamp. Founded by veteran proptech entrepreneur and ex-Uber employee James Kirimi, DoorFeed aims to be the first choice for institutional investors seeking to invest in residential real estate. The company is looking to expand its footprint across Europe, with a focus on Spain, Germany, and the United Kingdom., October 2023: H.I.G, a global alternative investment firm with over USD 59 billion in assets under management, invested in the real estate development company, The Grounds Real Estate Development AG (“the Transaction”), which is listed on the alternative stock exchange. The proceeds of the transaction are expected to be utilized to fund the capital expenditures of the current projects of The Grounds. The Grounds, based in Berlin, specializes in the acquisition and development of German residential properties located in large metropolitan areas. In the transaction, the major shareholders of The Grounds, which currently hold 73% of the company’s shares, have agreed to grant H. I.G. the right to share in future rights issues.. Key drivers for this market are: Increasing Developments in the Residential Segment, Investments in the Senior Living Units. Potential restraints include: Limited Availability of Land Hindering the Market. Notable trends are: Student Housing to Gain Traction.

Geneva stands out as Europe's most expensive city for apartment purchases in early 2025, with prices reaching a staggering 15,720 euros per square meter. This Swiss city's real estate market dwarfs even high-cost locations like Zurich and London, highlighting the extreme disparities in housing affordability across the continent. The stark contrast between Geneva and more affordable cities like Nantes, France, where the price was 3,700 euros per square meter, underscores the complex factors influencing urban property markets in Europe. Rental market dynamics and affordability challenges While purchase prices vary widely, rental markets across Europe also show significant differences. London maintained its position as the continent's priciest city for apartment rentals in 2023, with the average monthly costs for a rental apartment amounting to 36.1 euros per square meter. This figure is double the rent in Lisbon, Portugal or Madrid, Spain, and substantially higher than in other major capitals like Paris and Berlin. The disparity in rental costs reflects broader economic trends, housing policies, and the intricate balance of supply and demand in urban centers. Economic factors influencing housing costs The European housing market is influenced by various economic factors, including inflation and energy costs. As of April 2025, the European Union's inflation rate stood at 2.4 percent, with significant variations among member states. Romania experienced the highest inflation at 4.9 percent, while France and Cyprus maintained lower rates. These economic pressures, coupled with rising energy costs, contribute to the overall cost of living and housing affordability across Europe. The volatility in electricity prices, particularly in countries like Italy where rates are projected to reach 153.83 euros per megawatt hour by February 2025, further impacts housing-related expenses for both homeowners and renters.