The monthly house price index in London has been steadily increasing in recent years. In June 2024, the index reached 129.9, up from 129 a year before. Nevertheless, prices widely varied in different London boroughs, with Kensington and Chelsea being the priciest boroughs for an apartment purchase.

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 August 2024 forecast. During the five-year period, the prices are forecast to rise by 16.4 percent. In comparison, regional prime property prices and Outer London prime property prices are forecast to grow at a lower rate.

According to the forecast, house prices in London are expected to fall slightly in 2024, followed by a recovery in the following years. The decline can be explained with the cost of living crisis and the dramatic increase in borrowing costs. As the economy recovers in the next five-years, house prices for mainstream properties are forecast to rise by almost 14 percent. In 2023, the average house price in London ranged between 350,000 British pounds and 1.4 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.

The house price index in London reached 129.9 index points in June 2024, which was an increase from a year ago, despite a mild correction. 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 2015. How have regional house prices in the UK developed? House prices in other UK regions have risen even more than in London. In the North West, the house price index exceeded 160 index points, ranking it among the regions with the highest property appreciation. The UK house price index stood at 151 index points, suggesting an increase of 51 percent since 2015. Average house prices 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.

The UK residential real estate market, valued at approximately £360.27 billion in 2025, is projected to experience robust growth, driven by several key factors. Strong population growth, particularly in urban centers, fuels consistent demand for housing, while low interest rates and government initiatives aimed at boosting homeownership further stimulate market activity. The market is segmented into apartments and condominiums, and landed houses and villas, with each segment exhibiting unique growth trajectories. Apartments and condominiums, particularly in London and other major cities, are expected to see higher demand due to affordability concerns and lifestyle preferences, while landed houses and villas continue to appeal to those seeking more space and privacy, particularly in suburban or rural areas. Competition among major developers such as Berkeley Group, Barratt Developments, and others influences pricing and construction activity. While challenges exist, such as fluctuating economic conditions and rising construction costs, the overall outlook for the UK residential real estate market remains positive. The market's performance is also influenced by broader economic factors, such as inflation and employment rates, and is likely to see regional variations, with London and the South East generally commanding higher prices. The market's growth is expected to continue through 2033, with a compound annual growth rate (CAGR) of 5.75%. This growth will likely be influenced by factors such as evolving demographic trends (including increasing urbanization and family sizes), government policies impacting the housing market, and technological advancements impacting the construction and sales processes. International investment continues to play a significant role, especially in prime London properties. However, the market is susceptible to external shocks, such as changes in interest rates or economic downturns. Understanding these factors is crucial for investors and stakeholders operating within the UK residential real estate sector. Market analysis suggests continued demand for sustainable and energy-efficient housing, influencing the development of future projects. This comprehensive report provides an in-depth analysis of the UK residential real estate market, covering the period from 2019 to 2033. With a base year of 2025 and a forecast period spanning 2025-2033, this research offers invaluable insights for investors, developers, and industry professionals seeking to navigate this dynamic market. The report leverages extensive data analysis, covering key segments, emerging trends, and major players, to provide a clear understanding of market dynamics and future growth potential. High-search-volume keywords like UK property market, UK house prices, London property market, UK residential real estate investment, build-to-rent UK, multifamily UK, and UK housing market forecast are integrated throughout to ensure maximum online visibility. Recent developments include: May 2023: A UAE-based investment manager, Rasmala Investment Bank, has launched a USD 2bn ( €1.8bn) UK multifamily strategy for a five-year period to build a USD 2bn portfolio of UK residential properties. The strategy is focused on the UK market for multifamily properties through a Shariah-compliant investment vehicle, initially targeting the serviced apartment (SAP) and BTR (build-to-rent) subsectors within and around London. Seeded by Rasmala Group, the strategy is backed by an active investment pipeline for the next 12 – 18 months., November 2022: ValuStrat, a Middle East consulting company, increased its foothold in the UK by acquiring an interest in Capital Value Surveyors, a real estate advisory services company with offices in London. The UK continues to be one of the most established real estate markets worldwide and attracts foreign investors regularly. They are excited to expand their presence there to better serve all of their clients, both in the UK and the Middle East.. Key drivers for this market are: Demand for New Dwellings Units, Government Initiatives are driving the market. Potential restraints include: Supply Chain Disruptions, Lack of Skilled Labour. Notable trends are: Increasing in the United Kingdom House Prices.

The UK Office Real Estate Market is segmented By Key Cities (London, Birmingham, Manchester, and Other Cities). The report offers market size and forecasts in Values (USD billion) for all the above segments.

Investments in the commercial property market in London peaked in 2017 and have since declined. In 2022, the value of investment in the sector was 11.5 billion British pounds, which was a slight uptick from the previous year. Many European countries followed the same trend and experienced an increase in investments in 2022. According to the forecast, investment volumes in London are expected to fall in 2023, as developed markets continue to tackle accelerating inflation. In the following years, the market is expected to grow year-on-year, reaching about 17.4 billion British pounds in 2027.

The average mix-adjusted house price in London, England, peaked in August 2022, followed by a slight correction in 2023. In June 2024, the average house price amounted to about 523,134 British pounds, up from 519,795 British pounds a year ago. These recent fluctuations have also been observed by other measures, such as the house price index. The house price index is an important measure for the residential real estate market and is used to show changes in the value of residential properties.

The Report Covers UK Commercial Property Market Forecast and Size. The Market is Segmented by Type (Office, Retail, Industrial, Logistics, Hospitality, and Multi-Family) and by Key City and Region (England, Wales, Northern Ireland, Scotland, London (City), and Rest of the United Kingdom).

Prices for prime residential real estate in Outer London are expected to grow year-on-year, achieving a cumulative increase of over 15 percent until 2028. According to a August 2024 forecast, prices growth will be slower at first, but accelerate toward the end of the period. Meanwhile, Central London prime property prices are projected to experience a stronger growth rate.

Median price paid for residential property in England and Wales, by property type and administrative geographies. Annual data.

Median price paid for residential property in England and Wales by property type and electoral ward. Annual data.

Analysis of ‘Housing Prices in London’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://www.kaggle.com/arnavkulkarni/housing-prices-in-london on 28 January 2022.

--- Dataset description provided by original source is as follows ---

Content

This dataset comprises of various house listings in London and neighbouring region. It also encompasses the parameters listed below, the definitions of which are quite self-explanatory. • Property Name • Price • House Type - Contains one of the following types of houses (House, Flat/Apartment, New Development, Duplex, Penthouse, Studio, Bungalow, Mews) • Area in sq ft • No. of Bedrooms • No. of Bathrooms • No. of Receptions • Location • City/County - Includes London, Essex, Middlesex, Hertfordshire, Kent, and Surrey. • Postal Code

Inspiration

This dataset has various parameters for each house listing which can be used to conduct Exploratory Data Analysis. It can also be used to predict the house prices in various regions of London by means of Regression Analysis or other learning methods.

--- Original source retains full ownership of the source dataset ---

The UK housing market continued to show significant regional variations in 2024, with London maintaining its position as the most expensive city for homebuyers. The average house price in the capital stood at 519,579 British pounds in October, nearly double the national average of 292,059 British pounds. However, the market dynamics are shifting, with London experiencing only a modest 0.2 percent annual increase, while other cities like Newcastle upon Tyne and Belfast saw more substantial growth of 8.8 percent and 6.8 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.

Median price paid for residential property in England and Wales, by property type and Middle layer Super Output Area (MSOA). Quarterly rolling annual data. Formerly HPSSA dataset 2.

FOCUSON**LONDON**2011: HOUSING:A**GROWING**CITY

With the highest average incomes in the country but the least space to grow, demand for housing in London has long outstripped supply, resulting in higher housing costs and rising levels of overcrowding. The pressures of housing demand in London have grown in recent years, in part due to fewer people leaving London to buy homes in other regions. But while new supply during the recession held up better in London than in other regions, it needs to increase significantly in order to meet housing needs and reduce housing costs to more affordable levels.

This edition of Focus on London authored by James Gleeson in the Housing Unit looks at housing trends in London, from the demand/supply imbalance to the consequences for affordability and housing need.

REPORT:

Read the report in PDF format.

https://londondatastore-upload.s3.amazonaws.com/fol/fol11-housing-cover-thumb.jpg" alt="">

PRESENTATION:

How much pressure is London’s popularity putting on housing provision in the capital? This interactive presentation looks at the effect on housing pressure of demographic changes, and recent new housing supply, shown by trends in overcrowding and house prices. Click on the start button at the bottom of the slide to access.

View Focus on London - Housing: A Growing City on Prezi

HISTOGRAM:

This histogram shows a selection of borough data and helps show areas that are similar to one another by each indicator.

Histogram

MOTION CHART:

This motion chart shows how the relationship, between key housing related indicators at borough level, changes over time.

Motion Chart

MAP:

These interactive borough maps help to geographically present a range of housing data within London, as well as presenting trend data where available.

MAP

DATA:

All the data contained within the Housing: A Growing City report as well as the data used to create the charts and maps can be accessed in this spreadsheet.

FACTS:

Some interesting facts from the data…

● Five boroughs with the highest proportion of households that have lived at their address for less than 12 months in 2009/10:

1. Westminster – 19 per cent
2. Wandsworth – 17 per cent
3. Camden – 16 per cent
4. Lambeth – 14 per cent
5. Southwark – 13 per cent

-31. Harrow – 6 per cent

-32. Havering – 5 per cent

● Five boroughs with the highest percentage point increase between 2004 and 2009 of households in the ‘private rented’ sector:

1. Newham – 17 per cent
2. Greenwich – 11 per cent
3. Enfield – 10 per cent
4. Camden – 9 per cent
5. Harrow – 8 per cent

-32. Islington – 1 per cent

-33. Bexley – 1 per cent

● Five boroughs with the highest percentage difference in median house prices between 2007 Q4 and 2010 Q4:

1. Kensington & Chelsea – 29 per cent
2. Westminster – 19 per cent
3. Camden – 15 per cent
4. Islington – 14 per cent
5. Southwark – 10 per cent

-31. Newham – down 9 per cent

-32. Barking & D’ham – down 9 per cent

Graph and download economic data for Real Residential Property Prices for United Kingdom (QGBR628BIS) from Q2 1968 to Q3 2024 about United Kingdom, residential, HPI, housing, real, price index, indexes, and price.

The average house price in London increased slightly year-on-year as of June 2024, 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 340,403 British pounds. Kensington and Chelsea stood at the other end of the spectrum, with an average price of 1.2 million British pounds. Nevertheless, it was also one of the boroughs where prices fell the most. 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 1.5 million. That makes London properties a valuable asset. Historically, property prices in London have risen steadily, albeit minor fluctuations. Residential properties transactions Since 2006, the number of residential property sales has varied between 1.7 million and 0.8 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.

One of several indicators for house prices published on a quarterly basis. The data are mix-adjusted and (unlike in the case of data from Halifax or Nationwide) are based on completed transactions. For the latest ONS release, see here.

Number of residential property sales in England and Wales, by property type and administrative geographies. Annual data.