London: the market in figures
London tops the nine regions at £554,430, which is 88.9% above the English average of £293,525. It is also the region with the biggest fall over the latest year, 2.2%, with the South East next at 0.8%.
The series begins at £505,256 in 2016 and ends 9.7% higher, a gain of £49,174. Along the way: 3.2% for 2017, then falls of 1.5% and 1.4%, then 3.5%, 4.2% and 6.5% for 2020 to 2022, which set the peak of £581,320. A drop of 3.6% followed in 2023, then 1.2% in 2024, nothing in 2025, and now the present decline.
A flat averages £427,310 while a detached home averages £1,164,439; the difference is £737,129, or 172.5%. Terraced homes sit at £648,650 and semi-detached at £730,580. First-time buyers pay £473,051, 14.7% below buyers overall.
Kensington and Chelsea is the highest of 13 covered areas, £1,204,072, down 13.8%; City of Westminster (£887,206, down 14.3%) and Camden (£798,486, down 10.6%) follow. Croydon is lowest, £396,718, then Tower Hamlets (£447,950) and Greenwich (£462,868). Merton, up 0.1%, was the one area to grow. Together, Kensington and Chelsea and City of Westminster show the sharpest drops among the covered areas. Wandsworth had 4,402 sales and Croydon 3,676, within 75,886 for London.
The tax column is unusual: £17,722 of Stamp Duty Land Tax, 3.2% of the price, for a home mover, and the same sum for a first-time buyer. An additional property owes £45,443. The HM Land Registry fee is £295.
Payotte, from the UK HPI and the calculator.
Calculate for London
Frequently asked questions
What is the average house price in London?
The average price of a home in London was £554,430 in August 2026, -2.2% over twelve months (UK House Price Index).
Have house prices gone up in London?
The average price in London went from £505,256 in August 2016 to £554,430 in August 2026, a change of +9.7%; -2.2% over the last twelve months (UK House Price Index).
How much Stamp Duty Land Tax on an average-priced home in London?
On £554,430, Stamp Duty Land Tax (SDLT) comes to £17,722 for a home mover, £17,722 for a first-time buyer and £45,443 for an additional property, at the rates in force in England.
How much tax when you sell a home in London?
None on your main home if it was your only home, lived in for all the time you owned it, not let out and not used exclusively for business (Private Residence Relief). A second home or a buy-to-let pays Capital Gains Tax above the £3,000 allowance (2026 to 2027; rates in the calculator above). Bought at the average price in London in August 2016 (£505,256) and sold at the August 2026 average (£554,430), the gain of £49,174 costs a higher rate taxpayer £11,082, before deducting the costs of buying, selling and improving. The tax is reported and paid within 60 days of completion (HMRC).
Prices by property type, August 2026
| Type | Average price | England |
|---|---|---|
| Detached | £1,164,439 | £472,671 |
| Semi-detached | £730,580 | £291,962 |
| Terraced | £648,650 | £247,371 |
| Flat or maisonette | £427,310 | £218,563 |
| All types | £554,430 | £293,525 |
| First-time buyers | £473,051 | £246,042 |
The UK HPI is a mix-adjusted average (a hedonic model), not the price of the homes sold in the month. Northern Ireland figures are quarterly.
The trend, August of each year
| Year | Average price | Change on the year before |
|---|---|---|
| 2016 | £505,256 | — |
| 2017 | £521,450 | +3.2% |
| 2018 | £513,384 | -1.5% |
| 2019 | £506,081 | -1.4% |
| 2020 | £523,954 | +3.5% |
| 2021 | £545,831 | +4.2% |
| 2022 | £581,320 | +6.5% |
| 2023 | £560,630 | -3.6% |
| 2024 | £567,121 | +1.2% |
| 2025 | £567,115 | -0% |
| 2026 | £554,430 | -2.2% |
Areas covered in London
Sources
- Prices and sales: UK House Price Index, file UK-HPI-full-file-2026-08.csv. Contains HM Land Registry data © Crown copyright and database right 2020. This data is licensed under the Open Government Licence v3.0.
- Purchase tax: rates and sources of the calculator (HMRC).
- Tax when you sell: Capital Gains Tax rates, Tax when you sell your home and Report and pay your Capital Gains Tax (GOV.UK, HMRC).