London Property Market Update – September 2025

Latest trends in the London property market, September 2025 Key takeaways Prices edged up in August on Halifax’s index, setting a new UK record average, while Nationwide showed a small monthly dip and Rightmove asking prices eased in August. London remains the priciest region. The Guardian+3halifax.co.uk+3Nationwide+3 Bank Rate was cut to 4% on 7 August, improving sentiment and supporting activity into late summer. Bank of England+1 Mortgage approvals ticked higher in July to about 65k, pointing to steady autumn demand. Bank of England+1 Rents are still rising, but more slowly, and rental listings fell sharply in August as landlords pulled back. Zoopla+1 What the data says Prices and momentum Halifax reports UK prices rose 0.3% in August and are 2.2% higher year on year, with the average at £299,331. London saw modest annual growth, and still has the UK’s highest average price. Nationwide’s mortgage-based measure showed a 0.1% monthly fall in August, while Rightmove’s asking-price index recorded a 1.3% monthly drop in August, underlining competitive pricing through summer. Rightmove+3halifax.co.uk+3The Guardian+3 The official UK House Price Index for July 2025 is due Wednesday 17 September, so we will update figures again next week. GOV.UK Financing conditions The Bank of England cut Bank Rate to 4% on 7 August after a narrow vote. Lenders have been adjusting products, and sentiment has improved, though pricing remains fluid. Bank of England+1 Buyer demand and approvals Mortgage approvals for house purchase rose to ~65,400 in July, the highest since January. That typically feeds through to completions in the autumn. Bank of England+1 Rental market snapshot Zoopla’s latest Rental Market Report shows new-let rents up 2.8% year on year to an average £1,287 as of April data, signalling a gentler pace than last year. In August, RICS reported the steepest fall in landlord instructions since the first lockdown, implying ongoing upward pressure on rents into year-end. Zoopla+1 Local lens: Whitechapel and the Elizabeth line Areas around Elizabeth line stations have tended to outperform their boroughs since opening, thanks to improved connectivity. For buyers and landlords focused on Whitechapel, this supports long-term demand for well-located homes near the station. The Standard+1 What this means for you BuyersWith approvals improving and rates lower than earlier in the year, well-priced properties are drawing interest. Have documents ready, get an agreement in principle, and move quickly on competitively priced listings. Bank of England SellersRightmove’s August dip in asking prices shows buyers are price-sensitive. Accurate pricing and top-tier presentation maximise viewings and reduce time on market. Rightmove LandlordsRental growth has cooled from last year’s highs, yet supply is tightening again. Focus on compliance and quality to minimise voids, and consider medium-term fixes while Bank Rate is at 4%. Zoopla+2Financial Times+2 How Primeland Property can help Primeland Property, 124 Whitechapel Road, London, E1 1JE, offers local, data-led advice across sales, lettings and property management.Call 0207 377 5445 or visit primelandproperty.co.uk to speak with our team today. All Articles