London house prices could fall by almost another £5,000 before the end of 2026 if recent market trends persist, according to analysis by House Buyer Bureau.
The property purchasing company forecasts that the capital’s average price will decline from £552,655 to £547,889 by December.
That would represent a further fall of 0.9%, or £4,766, and leave the average London property approximately £21,000 below its July 2025 peak of £568,801.
The projection was produced using the previous 24 months of price movements. It represents an extrapolation of recent trends rather than a guarantee of future performance.
REGIONAL DIVIDE
House Buyer Bureau’s analysis of UK House Price Index data found that London was the only British region to record a negative average monthly growth rate during the latest 12-month period, at -0.2%.
The North East recorded the strongest average monthly increase at 0.8%, followed by Yorkshire and the Humber and the North West, both at 0.6%.
Prices increased by an average of 0.5% a month in the East and West Midlands, while England averaged 0.3%. The South East remained broadly unchanged.
The figures reinforce the continuing north-south divide in market performance, with affordability constraints and higher transaction costs weighing more heavily on London and the surrounding regions.
SELLER PRESSURE
Chris Hodgkinson, Managing Director of House Buyer Bureau, says: “The property market has largely stagnated over the last 12 months as we’ve seen minimal levels of house price growth materialise across most areas of Britain. However, London is the clear exception, with the capital continuing to be the only region to have seen house prices trend downwards.
“Unlike previous years where a period of decline has been followed by an almost immediate return to growth, it seems as though the London market has run out of steam.
“For homeowners looking to sell, the need for speed is becoming increasingly important. If current trends continue, the average London home could be worth almost another £5,000 less by the end of the year, on top of the value that’s already been lost since last summer’s peak.”
Hodgkinson adds that sellers remaining on the market for prolonged periods could face tougher negotiations as buyers become increasingly price-sensitive.
