The London housing market in Q2 2025 showed a notably slower growth compared to the rest of the UK. The average London prices in June 2025 showed a +0.8% year-on-year, compared to the rest of the UK, where prices were £269,000, a growth of +3.7% y/y. 

This comes after April’s Stamp Duty Land Tax, which targeted higher value transactions and second home purchases, reducing investor and overseas demand. With the changes, May-June 2025 we saw listings reach near-record levels in London, fuelled by the surge in lisiting supply and ongoing affordability pressures. Although, in June 2025, the volume of transactions began to rebound, helped by the declining mortgage rates.

Key Figures (June 2025 – HM Land Registry)

The market saw the largest July price drop in 20 years of data in July 2025. With London leading the declining, down -1.5% month-on-month and the average UK asking price dropping -1.2%, from £378,240 (June) to £373,309 (July).

In London boroughs like Wandsworth, Islington, Hackney register asking prices above £700,000. Whereas outer boroughs such as Croydon, Bexley, Greenwich are averaging around £500,000. Due to an over-supply and investor pullback on inner-borough properties, prices are quickly declining month-on-month. 

Relevant Articles:

1. HM Land Registry, “UK House Price Index summary: June 2025”, published July 2025 — see “Average house price … £269,000” and “London … +0.8%”)(GOV.UK)

 2. Transaction volume info: “estimated number of transactions … was 94,000 … 13.4% increase … following low April volumes coinciding with the 1 April 2025 SDLT changes”) (GOV.UK)

3. HM Land Registry “UK House Price Index summary: June 2025”) (GOV.UK)

4. Rightmove “House prices see biggest July drop in over 20 years”, published July 2025) (Rightmove)