Home Searches Hit a Yearly High as UK Price Growth Cools

For Hong Kong buyers and investors considering London property, the latest UK market figures point to an interesting shift. Buyer interest is growing, but house price growth is slowing, while the number of homes available for sale has reached its highest level in 12 years.

In other words, buyers may have more choice and greater room to negotiate as we move towards the autumn market.

What changed in August 2026?

According to Zoopla, searches for homes increased by 7% year-on-year in August, the highest level recorded over the past 12 months. At the same time, UK house price growth slowed to 0.9%, down from 1.3% a month earlier.

There is also more property to choose from. Housing supply rose by 5% year-on-year, reaching a 12-year high. For overseas buyers, particularly those looking at London from Hong Kong, this could mean more opportunities to compare locations, property types and asking prices before making a decision.

The average UK home is now priced at £364,999, while the average London property stands at £646,541.

More choice is putting pressure on London sellers

Rightmove’s August figures reinforce the changing market conditions. The number of homes available for sale has reached a 12-year high, increasing competition among sellers and encouraging more realistic pricing.

Average asking prices fell by 2% month-on-month across the UK, while London saw the sharpest annual decline, at 3.1%. Even with the recent market cooling, London is still in a league of its own, prices remain roughly 77% higher than the national average. For Hong Kong investors, though, this dip could signal a smart entry point.

A market with more supply and less upward price pressure can give buyers greater scope to negotiate, particularly when looking at properties where sellers are keen to complete.

East London continues to show resilience

Not every part of London is moving in the same direction. Several boroughs continued to record modest price growth in August, with East London showing particular resilience.

For investors, these differences highlight why choosing the right London location matters. City-wide averages can only tell part of the story, while factors such as transport links, employment hubs, regeneration and tenant demand can influence how individual areas perform.

Mortgage costs remain a consideration

The Bank of England held its base rate at 3.75% at its July MPC meeting, although inflation has since risen to 2.9%. Meanwhile, Rightmove reported that the average two-year fixed mortgage rate increased from 4.95% to 5.09%.

Higher borrowing costs remain an important consideration for buyers. If you’re investing from Hong Kong, looking at the sticker price is only half the picture. The real strategy comes down to factoring in mortgage costs, taxes, property management fees, and long-term rental yields.

What does this mean for Hong Kong buyers?

For Hong Kong buyers and investors, the current market offers a little more breathing room than earlier in the year. With home searches up and the number of properties for sale at a 12-year high, buyers have more choice and may have more room to negotiate on the right property.

London, however, continues to attract international buyers thanks to its strong employment market, world-class universities, transport network and established rental demand. For overseas buyers, these fundamentals remain important when looking beyond short-term price movements.

Seeing a neighbourhood in person can offer a very different perspective. In August, our Hong Kong team travelled to London for an exclusive neighbourhood walk and site visit at Colindale Gardens, where clients could explore the area first-hand and get a closer look at the development and what surrounds it.

Our Hong Kong team will continue to share the latest London property news, market insights and opportunities. If you are considering buying, selling or letting a London property from Hong Kong, our property experts can help you navigate the market and make a decision that fits your property goals.