London stays resilient despite an unusual UK price drop

Key highlights from June 2026

• Average asking prices across the UK fell by 0.6% in June 2026
• London prices held firm, with prime boroughs still recording annual growth
• Kensington & Chelsea led the capital with the strongest month-on-month rise
• Buyer enquiries remained close to the five-year average
• Mortgage rates continued to ease as inflation held steady

Rightmove reported a 0.6% fall in the average price of properties coming to market in June 2026. This is the largest June price drop recorded in the last 14 years, and it has understandably attracted a lot of attention. Look closer at the regional picture, however, and London tells a very different story.

Kensington & Chelsea lead London price growth

The capital's prime central boroughs continue to set the pace. Kensington & Chelsea recorded the strongest monthly increase, supported by steady demand from both domestic and international buyers who see London property as a long-term hold rather than a short-term trade.

Westminster, Camden and Islington also held their values, with well-presented family homes and new-build apartments attracting multiple viewings within the first fortnight of listing.

Market activity is consistent with previous years, despite a minor dip

Buyer enquiries across our London branches remained broadly in line with the same period last year. Transaction volumes softened slightly, but the pipeline of agreed sales suggests that activity is being delayed rather than lost.

Landlords, meanwhile, continue to see strong tenant demand. Average void periods across our managed portfolio remain short, and renewals are being agreed earlier than in previous cycles.

Mortgage rates ease as inflation holds steady

With inflation holding steady, lenders have been able to price fixed-rate products more competitively. Five-year fixes are now available at levels last seen before the most recent round of base rate rises, which is improving affordability for both first-time buyers and re-mortgaging landlords.

For investors, the combination of resilient capital values and firm rents keeps London yields attractive relative to other major global cities.

International property showcases, launches and private consultations

Our overseas offices continue to host regular property showcases and private consultations for clients in Hong Kong, Singapore, Dubai and India. These events give buyers direct access to new launches ahead of the wider market, along with guidance on financing, tax and lettings.

If you would like to discuss how the latest market data affects your own property plans, our local directors are always happy to help.