Homeowners urged to brace for further price falls

London is on course to remain the UK’s weakest housing market, with average house prices forecast to fall by almost £5,000 before the end of the year, according to House Buyer Bureau.

The firm analysed the latest UK House Price Index data and found London was the only region to record a negative average monthly rate of house price growth over the past 12 months.

While house prices across England have risen by an average of 0.3% a month, values in London have fallen by 0.2% a month, with the South East broadly flat.

Using house price trends over the past two years, House Buyer Bureau forecasts the average London property will decline from £552,655 to £547,889 by the end of 2026 – a fall of £4,766, or 0.9%.

If realised, the forecast would leave the average home in the capital almost £21,000 below its recent peak of £568,801 recorded in July 2025.

Elsewhere, the North East recorded the strongest average monthly house price growth over the past year at 0.8%, followed by Yorkshire and the Humber and the North West at 0.6%.

Managing director of House Buyer Bureau, Chris Hodgkinson, said: “The property market has largely stagnated over the last 12 months as we’ve seen minimal levels of house price growth materialise across most areas of Britain. However, London is the clear exception, with the capital continuing to be the only region to have seen house prices trend downwards.

“Unlike previous years where a period of decline has been followed by an almost immediate return to growth, it seems as though the London market has run out of steam.

“For homeowners looking to sell, the need for speed is becoming increasingly important. If current trends continue, the average London home could be worth almost another £5,000 less by the end of the year, on top of the value that’s already been lost since last summer’s peak.

“In a falling market, waiting in the hope that conditions improve can often prove to be an expensive decision. Every month a property remains unsold increases the risk of further price erosion, whilst buyers become more selective and negotiations become tougher.

“That’s why we’re seeing more London homeowners prioritise certainty and speed over chasing a price that may no longer be achievable. For many, securing a guaranteed sale today is proving a better financial outcome than risking months of uncertainty in the hope the market turns.”