London property update – A prime buying window opens for Hong Kong investors

The UK housing market felt an unexpected change this June. According to Rightmove, across the country, the average asking price dipped by 0.6%, making the biggest June drop we’ve witnessed in 14 years. It looks like sellers are swiftly adjusting their expectations and trimming prices just to get buyer’s attention, especially with everyone currently distracted by the ruthless summer heatwave and the FIFA World Cup.

But while the rest of the UK cooled off, London completely topped the trend. The capital’s market showed its usual resilience, with prices actually going up by 0.3% compared to this time last year.

June 2026: The quick snapshot

• UK-wide prices: Down 0.6% (average new listings)
• London prices: Up by 0.3% (led by a 2% jump in Kensington and Chelsea)
• Mortgages: Average 2-year fixed rates dipped to 5.07% (down from 5.18%)
• Interest rates: The Bank of England held the base rate steady at 3.75%
• London rents: Increased by 2%

London buyers aren’t waiting around

Recent price corrections across the capital have acted like a magnet for potential buyers. Homes are moving off the market much faster now, taking an average of just 68 days to find a buyer in comparison to a sluggish 89 days at the beginning of the year.

It’s also no secret that London plays by its own rules when it comes to property values. The average home here now costs around £687,080, which is a staggering 83% higher than the UK national average of £376,191.

Interestingly, it’s the premium neighbourhoods that are driving the momentum. Kensington and Chelsea led the pack with a 2% price jump in just one month, pushing its average property price past the £1.7 million mark.

Consistent demand and a little relief for buyers

While May’s intense heatwave made a few buyers hold, the market overall still looks in great form. Even though the number of new homes coming onto the market dropped slightly compared to last year, it’s still significantly higher than what we witnessed in 2023.

It’s also gotten a bit more affordable to borrow. The average two-year fixed mortgage rate edged down to 5.07%, which puts about £30 a month back into the average buyer’s pocket. This comes as the Bank of England decided to keep its base interest rate at 3.75% to help keep inflation steady at 2.8%.

London’s rental market is busier than ever

If you feel like finding a rental property in London is complicated right now, you aren’t imagining it. London is currently the only region in the UK seeing a major spike in rental demand (up by 6%). This is a perfect storm of higher mortgage rates keeping people renting longer, and a rental supply that is still 25% lower than it was prior to the pandemic.

Because of this pressure, the average London rent has hit £2,294, which is roughly 66% higher than the national average. The good part? Average wages have actually been growing at twice the speed of the rent increases, meaning tenant affordability has actually improved for the third -year in a row.

What’s next: summer viewings

With the Renter’s Rights Act officially coming into effect last month, the rules for UK landlords have changed quite a bit. Whether you’re based in the UK or investing from Hong Kong, our team is here to handle all the new compliance details so you can protect your returns minus the stress.

Also, if you’re planning a trip to the UK anytime soon, summer is easily the most pleasant time to view properties. The days are long, the weather is amazing, and the city is buzzing. Just let us know your dates and budget, and we’ll happily put together a personalised property viewing itinerary for you.

Looking beyond the UK?

Also if you want to look beyond the UK, we’re hosting a free live webinar on Wednesday, i.e 15 July 2026 at 7 PM HKT. Led by our Malaysia Director, Melvin Koh, this session is ideal if you’re on the lookout for a good value. Since Melbourne’s price growth has temporarily slowed compared to other Australian cities, it’s an incredible buying window. So whether you want a smart investment or university housing for your kids, Melvin will help you with the latest budget updates and compare the pros and cons of houses versus apartments.

Ready to talk about London options, book a summer viewing trip, or save your spot for the webinar? Get in touch today!