House Price Growth Rate in London

The house price growth rate in London has been positive for 11 months after a 16-month negative stretch. That said, the growth rate is modest and far from the boom period.

The latest year-on-year house price growth rate in London is 2.12%. That follows the downturn in 2023 and the improvement through 2024 and 2025. The house price growth rate has gone from peak to trough to improvement over the past decade.

Throughout this volatile period, the average house price in London continued to increase. It increased from £447,121 to £583,544 - a 30.51% increase.

This decade-long period is best understood in phases.

From 2015 to 2016, the house price growth rate in London was high. The year-on-year growth rate ranged from 4.53% to 17.09%. The average house price increased from £447,121 to £508,122 - a 13.64% increase.

From 2017 to 2019, the house price growth rate in London was low. The year-on-year growth rate ranged from -4.17% to 4.72%. The average house price increased from £504,901 to £532,997 - a 5.56% increase.

From 2020 to 2022, the house price growth rate in London was mixed. The year-on-year growth rate ranged from -0.51% to 11.78%. The average house price increased from £521,951 to £623,103 - a 19.38% increase.

From 2023 to 2024, the house price growth rate in London was volatile. The year-on-year growth rate ranged from -10.25% to 9.21%. The average house price decreased from £615,500 to £571,631 - a 7.13% decrease.

The house price growth rate in London in 2025 stabilised. The growth rate is positive but modest. The latest year-on-year house price growth rate is 2.12%. That is a 12.38 percentage-point rebound from the -10.25% low in December 2023.

There is macroeconomic context that applies throughout this period. Interest rates rose fast and then started to fall. Support for Stamp Duty (a temporary measure) ended - transaction activity weakened soon after. And add to that the narrative that London underperformed the UK - which data supported. Though this does not suggest causation.

The house price growth rate in London is in a stabilisation period. There has been positive, albeit modest, year-on-year growth for 11 months. This pattern, for now at least, points to continued stabilisation. That distinction matters for expectations.

Data Sources

London Property Guide uses internal and external data sources. Review the data sources mentioned in this insight.

• Our data comes from Boroughs on London Property Guide. This data is obtained from official UK property data sources.

Disclaimer

London Property Guide publishes data-driven insights using official data. This disclaimer applies to all insights published.

The figures on this page are sourced from official UK property data. They are for informational purposes and do not constitute financial or investment advice. Seek independent professional advice before making any property decisions.