Chattertons - Magazine - Page 3
LONDON PROPERTY MARKET
TODAY: DRIVING GROWTH
AND OPPORTUNITY
LONDON PRICES RECORD A
MONTHLY RISE
The latest official UK House Price Index
also supplied a positive monthly signal for
the capital. Average London house prices
rose by 1% between May and June 2026,
taking the average property value to
around £554,000. Semi detached homes
also recorded annual growth of 0.6%.
That monthly improvement provides an
encouraging sign of resilience within
parts of the London market, while the
capital continues to benefit from its
enormous variety of neighbourhoods,
employment opportunities, transport
connections and housing choices.
TRANSACTIONS SHOW
RESILIENCE
Activity across the wider market is also
continuing at meaningful levels. HMRC
recorded 106,620 non seasonally adjusted
UK residential transactions in July, 5%
more than in July 2025 and 3% higher
than in June.
For London homeowners considering a
move, this continued flow of completed
transactions provides an encouraging
backdrop. Property is still changing hands
in substantial numbers, while the autumn
return of buyer searches gives the market
fresh momentum heading towards the
end of the year.
RECORD RENTS SUPPORT
LANDLORDS
The London lettings market continues to
provide particularly strong news for
landlords. Rightmove’s Q2 Rental Price
Tracker showed that the average
advertised rent in London reached a
record £2,791 per calendar month. That
represented a 2% quarterly increase, the
capital’s largest quarterly rise since 2023,
while annual growth accelerated to 2.9%.
Rightmove also reported that London
experienced the largest reduction in
available rental supply. For landlords with
attractive, well maintained properties,
continued competition for available
homes provides a supportive
environment in which to secure tenants
and maintain healthy rental income.
VISIBLE
There are also signs that property
investors continue to see opportunity.
Hamptons reported that landlords
accounted for 13.3% of home purchases
across Great Britain between January and
April, the highest share since 2016. Its
summer research also found 5% more
people looking to acquire a buy to let
property.
Meanwhile, landlords buying previously
rented homes this year were achieving an
average gross rental yield of around 7%,
according to Hamptons, reflecting the
combination of rental income and
attractive investment opportunities.
A POSITIVE AUTUMN AHEAD
London enters October with returning
buyer attention, a monthly lift in official
prices, resilient transaction levels and
record advertised rents. For sellers, the
autumn market offers a fresh window to
capture renewed demand. For landlords,
strong rental values and continuing
investor interest underline the enduring
appeal of owning property in the capital.
INVESTOR APPETITE REMAINS
LIFESTYLE MAGAZINE
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