Understanding the London property market can feel like trying to solve a puzzle. With so many figures around average house prices flying around, it can be hard to get a clear picture of the market.
To make it easier, we’ve cross-referenced data from companies like Zoopla, Rightmove, Foxtons and Plumplot to compare the numbers for you.
However, it is worth mentioning that these prices are averages, and areas in Central London are more likely to come with higher price tags than those on the outskirts of the city.
What Is The Average Property Price in London?
The average property price in London seems to vary depending on the source, but here’s what the most recent data shows:
| Source | Average Property Price (London) |
|---|---|
| Zoopla | £685,253 |
| Rightmove | £691,565 |
| Foxtons | £707,422 |
| Plumplot | £678,000 |
By Property Type
Different types of properties come with different price tags, and the range can be big. Here’s a breakdown of what different websites said:
| Property Type | Zoopla Price | Rightmove Price | Foxtons Price |
|---|---|---|---|
| Detached | £1,232,237 | Not specified | £1,043,848 |
| Semi-detached | £767,132 | £783,175 | Not specified |
| Terraced | £774,196 | £795,090 | Not specified |
| Flats | £505,097 | £541,862 | £633,944 |
By Number of Bedrooms
Foxtons provides slightly more detailed pricing based on the number of bedrooms, which shows just how much prices vary with property size:
| Number of Bedrooms | Average Price |
|---|---|
| Studio | £436,337 |
| 1 Bedroom | £624,062 |
| 2 Bedrooms | £919,385 |
| 3 Bedrooms | £1,146,536 |
| 4 Bedrooms | £1,702,728 |
| 5 Bedrooms | £1,852,671 |
| 6 Bedrooms | £1,988,889 |
| 7+ Bedrooms | £3,850,000+ |
London Property Market Trends
London’s property market has seen a lot of shifts recently. According to Rightmove, the average London property sold for -5% over the past year, but was still 3% higher than in 2021, when the average price was £671,879.
Plumplot also talks about this decline, reporting a drop of £39.4k (5%) in average property prices over the past 12 months.
Plumplot not only reported on a drop of value, but also a drop in the amount of properties bought. Stats showed that sales dropped by 31.8% (around -30,200 transactions) compared to previous periods. This could be due to a number of reasons like market fluctuation, interest rate increases or general uncertainty.
Most Commonly Sold Properties In London
When it comes to the type of properties that sell, flats are the most frequently sold property type in London.
Rightmove reported that the average price for flats stands at £541,862, while Foxtons places it higher at £633,944. Zoopla’s data suggests a lower figure at £505,097, showing just how much average prices can change across platforms.
London Vs The Rest Of The UK
London’s property prices are, unsurprisingly, higher than in other regions across the UK.
Rightmove’s data puts London’s average price at £691,565, which is much higher than areas like the South East (£466,733), East of England (£393,813), and East Midlands (£262,673).
The priciest part of the city is Central London, where average prices reach a huge £1,579,414.
What Are The Most Expensive Areas Of London?
London isn’t only known for having some of the most affluent neighbourhoods in the country, but also in the world. These areas are full of high-earning clientele, looking for luxury real-estate.
Some of the most expensive areas in the city include
Knightsbridge: Home to Harrods department store and streets lined with luxury boutiques, Knightsbridge has average property prices between £5 million to £20 million. (Source: Rarest)
Mayfair: Known for its beautiful terraced homes and high-end shops, Mayfair’s average home prices are between £5 million and £15 million. (Source: Rarest)
Belgravia: Unique for its Georgian architecture and garden squares, Belgravia is one of London’s most prestigious areas, with property prices ranging from £3 million – £30 million. (Source: Uniacco)
Kensington: This area has been known for centuries as an affluent hub in the west of London, with average property prices around £1.2 million. (Source: Winterville)
Chelsea: Known for its expensive shopping and beautiful streets, Chelsea’s average home prices are around £1.65 million. (Source: Money Inc.)
Hampstead: Slightly further outside the centre, but close to Hampstead Heath and the beautiful Hampstead Village, it’s a neighbourhood with property prices of around £1.08 million. (Source: Money Inc.)
Notting Hill: Famous for its market and colourful houses, Notting Hill’s average property prices are about £1 million. (Source: Money Inc.)
Why Is London So Desirable?
London is the most expensive region in the UK for a number of reasons. As the capital of the UK and its economic centre, London is home to some of the world’s largest corporations.
Additionally, London has an amazingly diverse mix of neighbourhoods, each having its own unique lifestyle.
With its mix of some of the world’s best Universities, famous landmarks and economic opportunities, it’s no surprise that families, students and investors are all drawn to the city.
Understanding London’s Property Prices
While the numbers seem to change slightly between sources, one thing is clear: property in London continues to be a big investment. It’s no surprise then, that so many people look to get into the market through a property loan.
The average price generally falls between the £678k to £707k range, depending on the type, size and location of the property.
Whilst there has been a recent dip in prices and transactions, one thing is for sure: London will always be one of the UK’s most exciting and dynamic property economies.
