London’s average house price is masking a gulf of almost £900,000 between the capital’s cheapest and most expensive boroughs, according to a new property market report.
The average sold price across London stands at around £545,000, but ranges from approximately £361,000 in Barking and Dagenham to more than £1.25m in Kensington and Chelsea.
The London Property Market Report, published by UK Property News in partnership with Zoopla, argues that treating the capital as a single housing market can mislead buyers, sellers, renters, landlords and policymakers.
Produced to coincide with the 100th National Landlord Investment Show at Old Billingsgate (main picture), the report includes analysis from property data experts Kate Faulkner OBE and Nicole Bonner.
PRICES REMAIN BELOW THEIR PEAK
Average London property prices are around 3.7% lower than a year ago and remain approximately 5% below their 2022 peak.
However, performance varies considerably across the capital, with average prices in around 20 of London’s 32 boroughs still below their 2022 highs.
The report also highlights the changing financial balance between buying and renting.
Hamptons data included in the analysis indicates that renting a London property was, on average, £728 per month cheaper than buying in May 2026.
According to the report, purchasers may need a deposit of around 40% before monthly buying costs become cheaper than renting – even before Stamp Duty and other upfront purchasing expenses are considered.
HOUSING DELIVERY FALLS SHORT
London has added more than 664,500 homes since 2001/02, but its currently assessed housing need stands at approximately 84,884 additional properties every year.
Tracey Hanbury, Co-Founder of UK Property News and LIS Media Group, says: “There is no average property price, no average rent, no average London renter, and no average London landlord or property investor. Each is unique, with different opportunities and challenges.”
Richard Donnell, Executive Director of Zoopla, says the capital needs to be understood as a collection of individual markets.
He adds: “We are delighted to support the insight and analysis in this report, helping buyers, sellers and landlords understand the key trends that matter.
“London’s housing market is a collection of localised sub-markets, each with its own supply, demand, affordability pressures and opportunities.”
The report is intended to help tenants, buyers, sellers, landlords, investors and policymakers make decisions based on local conditions rather than London-wide headlines.
