Hammersmith<\/a> and Fulham they\u2019re down by 9.5% (a drop of around \u00a375,000), and in the City of London by 7.1%.<\/p>\nAndrew Montlake, CEO at London-based Coreco, a mortgage broker. said: “House prices have been under pressure in London for some time, as the latest data shows. For too long, prices grew too fast and now London is recalibrating. But it\u2019s an important recalibration.<\/p>\n
\u201cFinding a deposit is still an Everest for so many aspiring first-time buyers given the level prices are at in the capital. Although house prices in London have stagnated for a while, they remain spectacularly high compared to other areas of the country.<\/p>\n
\u201cAs a result, saving for a deposit has not become any easier, especially given the high cost of living and increasing rents, which eat up so much of what people take home. Those who are fortunate enough to get onto the property ladder in London usually get help from the Bank of Mum and Dad, or even Gran and Grandad, as without that it\u2019s mission impossible.<\/p>\n
\u201cIf you are fortunate enough to get a deposit to buy in London, affordability in itself is not such an issue as it was a few years ago as mortgage rates have come down to a more acceptable level \u2014 and they continue to fall with some lenders cutting rates quite sharply for first-time buyers over the past week.<\/p>\n
\u201cRates are by no means as low as they were five or six years ago, but they are still comfortably below the historical average. And in London more than anywhere, that matters.<\/p>\n
\u201cCrucially for the London property market, lenders also eased their criteria throughout most of 2025 and are now much more willing to lend at increased income multiples. People can now borrow more, which means that elusive first rung on the London property ladder finally becomes achievable.<\/p>\n
\u201cAnd even though mortgage payments may be quite high in the capital, they\u2019re often still better than equivalent rental payments, which can be borderline obscene.<\/p>\n
\u201cLenders cracking the affordability conundrum has been a gamechanger for the London property market and I expect things to heat up again in 2026. Prices will not shoot up, as they\u2019re so high already, but improved affordability is helping more people get on the ladder. That, in turn, oils the rest of the property market in the capital.<\/p>\n
\u201cI definitely think that those who buy earlier in the year are more likely to get a better deal than those who wait until the tail end of 2026, as prices will have risen by then. And lower mortgage rates could see the market shift from a buyers\u2019 market to a sellers\u2019 market.<\/p>\n
\u201cJanuary on the whole was quiet, which is not unusual, but with mortgage lenders now cutting rates and the Bank of England saying very clearly that another cut to the base rate is incoming if inflation cools, which it did in January to 3%, things have now picked up. February is seeing demand return, and then some.<\/p>\n
\u201cThe people who are buying now seem very determined while sellers in London also seem more motivated, and are not hanging on for the silly prices they may once have received. 2026 has the potential to be a turning point for London\u2019s property market after a subdued three or four years.\u201d<\/p>\n
Looking for more from MyLondon? Subscribe to our <\/strong>daily newsletters here<\/a><\/strong> for the latest and greatest updates from across London.<\/strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"A London mortgage broker has issued some key advice for those looking to buy in the capital House…\n","protected":false},"author":2,"featured_media":796616,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7757],"tags":[748,393,4884,257,2516,10786,16,15],"class_list":{"0":"post-796615","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-london","8":"tag-britain","9":"tag-england","10":"tag-great-britain","11":"tag-london","12":"tag-property","13":"tag-property-prices","14":"tag-uk","15":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116153258206792926","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/796615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=796615"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/796615\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/796616"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=796615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=796615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=796615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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