London property values set to fall
The latest market analysis from House Buyer Bureau has found that London is now the only region of Britain where house prices continue to trend downwards, with the average home in the capital forecast to lose almost another £5,000 in value before the end of the year should current market conditions persist.
House Buyer Bureau analysed the latest UK House Price Index data to calculate the average monthly rate of house price growth across Britain over the last 12 months. The company also modelled London’s next six months using the previous 24 months of house price movements to forecast how values are likely to evolve through the remainder of 2026.
The analysis shows that whilst house price growth has largely stagnated across Britain, London is the only region to have recorded a negative average monthly rate of growth over the last 12 months.
The North East has seen the strongest average monthly house price growth at 0.8%, followed by Yorkshire and the Humber and the North West (0.6%), with the West Midlands and East Midlands both recording 0.5%.
Across England as a whole, house prices have increased by an average of 0.3% per month, whilst the South East has remained broadly flat at 0.0%.
London, however, has seen house prices decline by an average of -0.2% per month, making it the only region of Britain where values continue to trend downwards.
Based on the previous 24 months of house price movements, House Buyer Bureau forecasts that London’s average house price will fall from the current average of £552,655 to £547,889 by December 2026.
Should this forecast materialise, it would represent a further decline of -0.9%, or £4,766, by the end of the year.
It would also mean that the average London home has lost almost £21,000 since reaching its recent peak of £568,801 in July 2025.
Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:
“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.
In a falling market, waiting in the hope that conditions improve can often prove to be an expensive decision. Every month a property remains unsold increases the risk of further price erosion, whilst buyers become more selective and negotiations become tougher.
That’s why we’re seeing more London homeowners prioritise certainty and speed over chasing a price that may no longer be achievable. For many, securing a guaranteed sale today is proving a better financial outcome than risking months of uncertainty in the hope the market turns.”
You May Also Enjoy
Seven things to do if a tree damages your property
Leasing demand rises across all sectors
Don’t Put The Property Market On Pause
Before You Sign: 10 Things Home Movers Wish They Knew
Property expert warns homeowners to lock in amid mortgage rates uncertainty
