Why London House Prices Are Falling But Rent Keeps Rising
Updated: Oct 10
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Why London House Prices Are Falling, But Rent Keeps Rising?
The average London home fell 3.7% to £545,000 — but rent hit an all-time record of £2,791/month. Both numbers are true. Neither one is the whole story.
The "crash" headlines are mostly about £5m+ sales, down 36% — driven by the UK scrapping non-dom tax status, not by houses becoming less desirable.
What's actually falling is flats (what most renters our age deal with). What's rising is houses. One "average" is quietly describing two completely different markets.
Every headline this year says the same thing: London house prices are falling. Technically true. Also, if you're renting a one-bed in Zone 2 right now, almost insultingly irrelevant. The average home fell to £545,000. The weakest performance of any English region, while the average advertised rent hit £2,791 a month, an all-time high. Both numbers came from the same market in the same year.
