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ONSMarket report · London · Autumn 2026
London, in numbers.
Prices have fallen for eleven months in a row, while London rents are the highest in the UK and still rising. For long-term buyers, that gap is the story. Here is where the market stands today, from official and institutional sources only.
- Average house price
- £550,000 Jul 2026 · −3.3% yoy · HM Land Registry
- Average monthly rent
- £2,332 Aug 2026 · +3.5% yoy · ONS
- Average flat price
- £424,000 Jul 2026 · HM Land Registry
- Heathrow passengers
- 84.5m 2025 · record year · Heathrow
01 · Prices
Prices down 3.3% — a buyer's window.
London is the only English region where prices are falling. The average London home is now about £19,000 below its July 2025 level, at £550,000, and prices have been lower year on year for eleven months running. Inner London has been hit hardest.
Meanwhile rents are still rising. For buyers with a long view, London is cheaper to enter than at any point since early 2024.
Source: HM Land Registry UK House Price Index. Local figures are provisional and revised monthly.
| Borough | Average price | Average rent | Indicative gross yield* |
|---|---|---|---|
| Kensington & Chelsea | £1,233,000 | £3,690 / month | 3.6% |
| Lambeth | £537,000 | £2,525 / month | 5.6% |
| Tower Hamlets | £448,000 | £2,453 / month | 6.6% |
| Barnet | £601,000 | £1,949 / month | 3.9% |
| Newham | £390,000 | £1,928 / month | 5.9% |
| Croydon | £390,000 | £1,582 / month | 4.9% |
Prices: ONS / HM Land Registry (Jul 2026). Rents: ONS (Aug 2026). *MCG calculation: average rent × 12 ÷ average price, before costs. Individual properties will differ.
02 · Rents
The UK's highest rents, still rising.
The average London rent reached £2,332 a month in August 2026, up 3.5% in a year and the highest of any UK region. Kensington and Chelsea is the most expensive area in the country at £3,690 a month.
Annual changePricesRents
London
United Kingdom
£1,582Croydon
£1,928Newham
£1,949Barnet
£2,453Tower H.
£2,525Lambeth
£3,690Kens. & C.
Source: ONS Price Index of Private Rents, September 2026 release.
03 · Outlook
What the forecasters expect.
Both Savills and JLL cut their forecasts this spring. JLL now expects London prices to end 2026 down 2.5% and prime central London down 5.5%, but London rents to keep rising.
| 2026 | 2027 | 2028 | 2029 | 2030 | 5 years | |
|---|---|---|---|---|---|---|
| UK house prices | −2.0% | +2.5% | +5.0% | +6.0% | +6.0% | +18.5% |
| Bank of England rate (year end) | 3.75% | 3.50% | 3.00% | 2.75% | 2.50% | — |
JLL forecasts London rents to rise 3% in 2026 and 17.1% over the five years to 2030, ahead of the UK's 16.5%.
JLL, Residential Forecasts 2026–2030
JLL's Prime Central London index was down 8.7% year on year in March 2026. JLL sees sentiment, more than interest rates, driving central London.
JLL, Residential Forecasts 2026–2030
Forecasts are opinions, not guarantees.
04 · Why tenants choose London
Four engines of demand.
Heathrow
A record 84.5 million passengers in 2025, Europe's busiest hub, with expansion now the Government's flagship infrastructure project.
Heathrow, Feb 2026Universities
Home to world-leading universities including Imperial, UCL, King's and LSE, and the largest student population of any UK city.
HESA student statistics 2024/25Tight supply
Rents at the UK's highest level, still rising, while JLL expects EPC rules to push more rental homes off the market by 2030.
ONS; JLL, May 202605 · The MCG view
What this means for investors.
- Entry point. Prices are about £19,000 below their 2025 level, while rents are up 3.5%. Timing favours patient buyers.
- Pick the borough. Outer and east London boroughs such as Tower Hamlets and Newham show gross yields near 6%, far above prime areas.
- Rent growth. JLL expects London rents to rise 17.1% over five years.
- Mind the short term. Forecasters expect prices to fall a little further in 2026. This is a long-term play, not a quick gain.
Sources
- ONS — Private rent and house prices, UK: September 2026
- HM Land Registry — UK House Price Index, London
- ONS — Housing prices by London borough (16 Sep 2026)
- Savills — Revised mainstream house price forecasts (Jun 2026)
- JLL — Residential Forecasts 2026–2030 (May 2026)
- Heathrow — results for year ended 31 Dec 2025 (Feb 2026)
- HESA — Higher Education Student Statistics 2024/25
Figures last reviewed 30 September 2026. Yields are MCG's own calculation before costs. This page is for information only and is not financial advice. Property values and rents can fall as well as rise.
