London Market Overview
The London property market continues to show resilience despite ongoing economic uncertainty, higher living costs and cautious buyer sentiment.
While the market is more price-sensitive than during the post-pandemic boom, activity levels remain steady across both sales and lettings. Buyers and tenants are increasingly focused on value, quality and location, with well-presented properties continuing to outperform the wider market.
Mortgage rates have eased slightly during May, helping improve confidence among buyers, although affordability remains a challenge in higher-priced areas such as London
Sales Market Update
Buyer Demand Remains Active
The UK housing market has maintained momentum throughout spring 2026.
Key national indicators show:
- Increased buyer enquiries since April
- Higher stock levels creating more choice for buyers
In London specifically, the market remains highly selective.
Correct pricing is now critical. Properties that are:
- realistically priced
- well-presented
- energy efficient
- close to transport links
continue to attract strong interest.
However, overvalued stock is sitting on the market for longer, particularly in prime central London sectors.
London House Prices
Average asking prices nationally rose modestly in May, although London continues to lag behind northern regions due to affordability pressures.
Current trends suggest:
- Stable pricing across mainstream London markets
- Softer conditions in some prime central locations
- Continued demand for family homes in outer London
- Strong competition for “move-in ready” properties
Prime London markets above £5 million remain more subdued, with transaction levels significantly lower than previous years.
Areas offering strong transport connections and relative value continue to outperform.
Increased Housing Supply
One of the biggest shifts in 2026 has been the rise in available stock.
Nationally:
- New property listings are significantly above long-term averages
- Buyers now have more negotiating power
- Price reductions are becoming more common on overpriced homes
For sellers, presentation and pricing strategy are now more important than ever.
London Rental Market Update
Rental Demand Remains Strong
The London lettings market continues to experience strong tenant demand, particularly for:
- one and two-bedroom flats
- properties near transport hubs
- furnished apartments
- pet-friendly homes
- professionally managed properties
While rental growth has moderated compared to the sharp increases seen in previous years, demand continues to exceed supply in many areas.
Landlords are benefiting from:
- low void periods
- continued tenant competition
- strong demand from international tenants
- ongoing corporate relocation activity
Compliance and Regulation
The rental sector remains heavily influenced by upcoming government reforms and compliance changes.
Landlords are increasingly focused on:
- Renters Rights Bill preparation
- EPC requirements
- licensing schemes
- property standards
- compliance management
Many landlords are now opting for fully managed services to reduce legal and administrative risks.
At Ted Hoskins Estate Agents, we continue to support landlords with:
- tenant sourcing
- compliance guidance
- rent reviews
- property management
- licensing support
Prime Central London
Prime Central London continues to show a mixed picture.
The strongest activity remains concentrated in established ultra-prime locations such as:
- Kensington
- Belgravia
- Mayfair
However:
- transaction volumes remain below historic norms
- overseas buyers remain cautious
- political and tax uncertainty continues to affect confidence
Best-in-class properties are still achieving strong prices, but buyers are increasingly selective.
Market Outlook – Summer 2026
Looking ahead, the London market is expected to remain stable through summer 2026.
Key factors likely to influence the market include:
- inflation trends
- Bank of England interest rate decisions
- mortgage pricing
- rental sector reform
- wider economic confidence
Current expectations suggest:
- modest house price movement
- continued healthy transaction levels
- ongoing rental demand
- stronger competition between sellers
For landlords and sellers, strategic pricing and professional management will remain essential.
Ted Hoskins Commentary
London’s property market is becoming increasingly quality-driven. Buyers and tenants still want to move, but they are taking more time and making more informed decisions. Correct pricing, presentation and compliance are now critical to achieving the best results.
— Ted Hoskins Estate Agents
Thinking of Selling or Letting?
Whether you are considering selling, letting or reviewing your portfolio, the team of our family-run agency at Ted Hoskins Estate Agents can provide tailored advice based on current requirements.
Contact us to arrange:
- a sales valuation
- rental valuation
- landlord compliance review
- portfolio consultation
