London homes are in demand again — find out why

The London property market showcases renewed energy in mid-2025, indicating a promising period for discerning Hong Kong property buyers seeking appealing opportunities in the capital.

Latest data indicates that property sales across the UK grew by more than 6%* in June, –compared to the previous year. This figure is driven by more homes entering the market and marks the highest hike in sales activity in the last four years.

In fact, compared to last year, more than 14%* of properties are available in the London market, giving buyers and investors a wider range to choose from.

Subtle price shifts open windows of opportunity

The overall house prices across the UK rose by 1.4% in the past year up until May 2025; this figure is still below the 2% rise observed earlier this year. Sellers, however, remain cautious, which is good news for discerning buyers seeking fair property values.

In June 2025, according to Rightmove, average asking prices for buyers decreased by 0.3%, which is approximately £1,277, resulting in a UK average property price of £378,240. Entry points for investors are rapidly increasing as sellers are cautious with listings due to higher interest rates and living costs.

London property market stands strong

Unlike many parts in the United Kingdom, London marks resilient growth. HM Land Registry figures indicate a 2.6% monthly increment in average property values, with the typical London home now priced at £695,414 — a striking 84% above the UK average.

Homes are 22% more likely to receive inquiries on the first day itself and buyer demand in London is 3% higher compared to the previous year. These figures mark a clear indication of London’s international appeal and robust economy, making it a leading choice for discerning property investors from all over the globe.

Prime and super-prime segments thriving

Interest in high-end London homes is particularly active as the Benham and Reeves Prime London Demand Index indicates a significant hike in activity for prime (£2m–£10m) and super-prime (£10m+) properties in Q2 2025. Clapham recorded a 37% jump in prime homes and Fitzrovia marked a 25% increase for super-prime properties.

On another note, buyers can also take advantage of discounts of up to 12% on unmodernised prime properties, marking a unique value proposition for those willing to undertake refurbishment projects.

Hong Kong buyers’ focus on North Gate Park

Benham and Reeves Hong Kong continues its exclusive private consultations for North Gate Park in the sought-after Haringey. With prices starting from just £375,000*, this contemporary development offers rental yields of up to 5.7%*, making it a lucrative option for investors looking for solid returns in an up-and-coming London location.

On the other hand, our Malaysia team will be focused on a roadshow this July to preview the all-new phase of The Halo at Oval Village. This is a highly sought-after development amongst discerning overseas and domestic buyers thanks to its Zone 1 location.

Rental market rises upward

London rental prices showcase a solid upward trajectory. ONS data highlights a 7% hike in rents across the UK in the 12 months to May 2025, while London recorded a 7.7% jump year on year. These figures bring down the average monthly rents in London to £2,249 — almost 68% above the national average of £1,339.

Reports further state that rents have surged 21% over the past three years, which is a 4% increase in house prices. Although demand for rental properties eased slightly from last year’s peak, it still sits 60% higher than pre-pandemic levels. Looking ahead, rentals across the capital are expected to rise another 3–4% over the second half of 2025, due to factors such as strong tenant demand and limited supply.

Now is a moment to watch

For savvy Hong Kong property buyers in London, this period presents a rare, desirable combination of higher choices, moderate pricing and solid rental returns. Benham and Reeves Hong Kong, with its experience of over six decades, can help you through every step of the property buying process from selection to property management. With over 21 offices in London and more than 14 overseas offices, our team is equipped to offer you the best pricing and assistance.

If you are thinking about adding a London property to your portfolio, get in touch with our Hong Kong team today and set up a private, no-obligation consultation.

Disclaimer: To buy or not to buy non-local off-plan properties? Assess the risks before you buy! 境外樓花買唔買？計過風險先好買！Prices and details are correct at the time of going to press. Expected rental yield per annum, not guaranteed. Travel times are an approximation only, sourced from Transport for London and Google Maps, and may reference driving, public transport, cycling and/or walking times. Planning permission number: HGY/2022/1833 granted by Haringey Council. Lease Term: 990 years (Apartments); Freehold (Houses). Purchasers are acquiring an interest in the land, the building to be erected thereon and/ or a right to use and occupy the properties in the building. Estimated Completion Date: Spring 2026. Computer-generated images for illustrative purposes only. Purchasing uncompleted properties situated outside Hong Kong is complicated and contains risk. You should review all relevant information and documents carefully before making a purchase decision. If in doubt, please seek independent professional advice before making a purchase decision. The non-licensed staff engage in estate agency work exclusively in relation to properties outside Hong Kong and they are not licensed to deal with any property situated in Hong Kong. Property reference number: BRHK-UK250501. Advertisement Date: 29 ul 2025. Benham and Reeves (Hong Kong) Limited License No. C-092169.