London Property Market Update: Trends in Flat and Overall Property Prices (January 2020 – May 2025)
The London property market has experienced significant fluctuations over the past few years, influenced by a mix of global events and local economic factors. Analyzing recent trends reveals important insights into how different boroughs have fared from January 2020 through May 2025, especially regarding flat prices versus overall property values.
The Peak and Decline in UK and London Property Prices
Nationally, the UK housing market peaked around late summer 2022, driven by the combined effects of the COVID-19 pandemic, economic repercussions from the War in Ukraine, and political upheaval following the UK government crisis in October 2022—specifically, Prime Minister Liz Truss’s mini-budget. Since then, property prices across the country experienced a slowdown, with some regions experiencing declines.
Recovery and Growth Post-Pandemic
Over the past three years, the UK housing market has shown signs of resilience, with property prices gradually rebounding to pre-2022 peaks. Interestingly, for the entire UK, property values have even surpassed the summer 2022 high. This upward trend indicates a sustained recovery in the national housing market.
London Boroughs: Divergent Trends
However, when breaking down the data at borough level, notable differences emerge between inner and outer London areas:
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Inner London Boroughs: Prices in inner London have remained relatively subdued. Overall, property values are roughly 5% below their summer 2022 peak. Some boroughs, such as Westminster, Tower Hamlets, and Lambeth, have seen prices decline further, falling below their 2020 levels. This indicates a cautious or decreasing demand in the city centre, likely influenced by remote work trends and changing lifestyle preferences.
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Outer London Boroughs: Conversely, several outer boroughs have demonstrated strong recovery, with some exceeding their 2022 peaks. For instance:
- Lewisham: +3.7%
- Waltham Forest: +2.7%
- Havering: +2.4%
These figures reflect an ongoing shift away from central London, with buyers seeking affordability and space in the suburbs.
Long-Term Trends and Buyer Preferences
Despite the current slow recovery in inner London property prices, the overall trend indicates continued interest in purchasing homes outside central areas. This pattern has been accentuated by the pandemic’s remote work shifts,