Market snapshot, September 2026
London is the one market we cover where prices are falling. The average stood at £569,000 in July 2026, down 3.3% over twelve months and the weakest annual rate since January 2024. Rents moved the other way, up 3.5% to £2,332 a month.
That combination matters for investors. Entry prices are softer than they have been in two years while rental income holds up, which is a more favourable buying window than London has offered recently. It also means London is an income and long hold play rather than a short term growth one. Across all property types gross yields average around 4.9%, and boutique stock of the kind we source in SW18 typically runs between 4 and 5.5% gross.
Be clear eyed about the forecast. Savills revised its numbers in June 2026 and now expects London to fall 4% this year, recover 1% next year and grow 10.6% cumulatively to 2030, the weakest of any UK region. Investors buying here are buying the resilience of the asset and the depth of the tenant market, not near term capital growth.
On infrastructure, Old Oak Common is genuinely under construction, with all six underground platforms complete, but the station is not due to open until 2039. That is a long horizon and we would not price it into a purchase today.
London is forecast to fall 4% across 2026 and recover 1% in 2027, with cumulative growth of 10.6% to 2030, the weakest regional outlook in the UK.
London Property Investment
Welcome to London, a global magnet for tourists, professionals, graduates, and investors alike. Prices have softened over the past year while rents have kept rising, which makes 2026 a more favourable entry point than London has offered for some time.
- Rents up 3.5% in the year to August 2026, to an average of £2,332 a month
- London remains the largest city economy in Europe and the deepest tenant market in the UK.
- Average values up around 60% since January 2014, from £355,000 to £569,000
- UK’s most secure and robust residential investment market
Complete the form to register interest to access our off-market, off-plan property investment deals in London.
London: A Summary
London is a complex place to invest in property.
For example, if you’re after high yields, then London rarely offers the best, with other cities around the UK performing much better.
Furthermore, property prices are more expensive in the capital than in any other part of the country. As such, investing is very expensive, especially when you factor in additional costs, such as stamp duty, mortgage interest, maintenance, and so on.
However, it’s a different story when you look at what London has to offer by way of capital growth.
For example, the average property value in London in January 2014 was £355,000. By July 2026 it stood at £569,000, an increase of around 60% over that period, even after the falls of the past year.
In short, the capital appreciation of property in London is unmatched anywhere else in the UK. And even while other areas might offer similar percentage returns, the raw cash return is unparalleled due to the higher prices.
Property Investment Opportunities
One of the most exciting opportunities for investors in London lies in the off-plan property market.
Given the city’s high land and development costs, developers are often keen to secure early sales to offset expenses. This creates a window of opportunity for investors to purchase properties at a discount before construction is completed.
Plus, off-plan property in London often comes with the opportunity for significant capital appreciation during construction, especially in areas undergoing wider regeneration or new development.
Investing in London’s off-plan property market does come with considerations, such as the extended timeframe before completion and the potential for market fluctuations. However, for those who can afford to be patient, the long-term rewards can be exceptional. You can learn more about whether off-plan is right for you in our guide: Off Plan Property Investment
Regardless, you can find all of the latest off-plan and complete, ready-to-let properties available in London below. If you find one of interest, contact our team for a free investor brochure.
The Moxon, London
Old York Mews, London
Contact The Team
Call Our Office to Speak Directly to an Experienced Property Investment Consultant
Popular Areas In London
If you are unfamiliar with London but you’re looking to invest in the city, we recommend getting familiar with all the different areas. Below, we’ve picked out three areas well worth consideration. For more granular detail, check out our research into the best areas for rental yields in London.
Central London is home to some of the most expensive property in the world. Investors must bear this in mind as it typically means rental yields are lower. For example, an area like Mayfair can offer as little as 1.5%.
However, our own research shows such properties tend to enjoy the highest rates of long-term capital growth in the country, so any choice depends on an investor’s budget and objectives. Many investors seek a balance between the two by looking slightly further afield for properties that still offer easy access to the centre, but at a more affordable price and with better yields.
East London typically offers more affordable property prices and stronger yields. Even premium, inner-district locations such as Canary Wharf can achieve a 4.1% yield. However, further out there are even stronger results to be found, with Foxtons reporting rental yields of 6.4% in Barking and Dagenham.
Promising yields can be achieved in South London. Similar to other areas, the further out you go, the more prices reduce and yields can increase. Areas such as Wallington and Mitcham can offer yields of around 4.7%. If you delve a little deeper and search hyper-locally then you can find great investment opportunities, such as Merton, which has been known to achieve yields around 6.3% (Foxtons).
Frequently Asked Questions
Below you can find a range of common questions from previous investors. If you require specific details and advice, please do not hesitate to contact us today on +44 (0)204 538 2879 or via info@vertapropertygroup.co.uk.
Is London a good place to invest in property?
Typically, London prices do very well over the long term. For example, after the last major global financial crash in 2008, they excelled.
Savills published that between 2007 and 2017, London property prices grew by 63.5%. The average across the rest of the UK was only 15.8%, for comparison.
What rental yields can I expect in London?
Realistically, you will generally get better yields when investing further north (such as Birmingham, Leeds, Liverpool and Manchester), as initial purchase prices and stamp duty will be considerably lower in comparison to London.
That said, if you pick certain areas of London, you can find quite good yields, but it isn’t easy. Check out our buy-to-let yield map to find the most promising hotspots.
Why Invest With Us?
As a property investment company for Liverpool and elsewhere across the UK, we pride ourselves on finding high-potential, well-priced opportunities in a clear, ethical manner for our clients. In addition:
- We do not charge any sourcing fees.
- We’re signed up to the Property Redress Scheme Scheme to protect our clients.
- We conduct extensive due diligence on all investment opportunities.
- We provide after-sales support.
- Due to our close relationships with property developers, often we can get exclusive discounts or bonuses (like a free furniture pack)
- We’ll help you with any extra steps in your journey, whether that’s finding a mortgage provider, instructing a property management company, or something else.
