17/04/2026
As of April 2026, the London real estate market is entering a stabilisation phase after several years of volatility. While average prices in the capital fell by approximately 1.8% over the past year, many analysts expect growth to "flatline" or rise modestly (up to 3%) throughout 2026 as buyer confidence returns.
Market Summary: April 2026
Average Prices: The average house price in London is currently around £554,000.
Prime Central London (PCL): Areas like Kensington & Chelsea and Westminster are seeing sharper price corrections, with some flat values down more than 10% year-on-year
Rental Market: Rents are reaching a "turning point" of stability. Average London rents rose just 0.7% in Q1 2026 to £2,736pcm, with a record 26% of listings seeing price reductions to attract tenants.
Mortgage Rates: The Bank of England base rate currently sits at 3.75%. Best available fixed rates for buyers with strong credit range from 4.19% to 4.29%.
Property Prices by Borough
Affordability remains highly localised. Below are current average prices and the annual salary typically required to secure a mortgage in those areas:
Borough Average House Price Required Salary (Est.)
Kensington & Chelsea £1,120,900 £199,300
Westminster £936,900 £166,600
Hammersmith & Fulham £723,900 £128,700
Wandsworth £657,700 £116,900
Bromley £517,300 £92,000
Tower Hamlets £473,600 £84,200
Croydon £393,300 £69,900
Barking & Dagenham £335,500 £59,600
New Developments & Investment Hotspots
Supply shortages continue to support values in specific emerging
2026 Completions: Major new-build projects finishing this year include The ClaphamJunction , at and in .
High Yield Areas: Investors seeking better returns are looking at (approx. 5.5% yield) and
(approx. 4.9% yield), which outperform the City's average of 2.9%.
Regulatory Changes: The Renters' Rights Act, coming into force on 1 May 2026, will introduce new restrictions on landlords, such as banning offers above the asking price and granting tenants the right to keep pets.
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