- \n
- \tAverage new seller prices rise by 1.2%, higher than the usual May increase in a decade.<\/li>\n
- \tPrices in London are up by 0.8%, as agreed sales go up by 8% YoY.<\/li>\n
- \tThe two-year average fixed mortgage rate drops to 5.18% from 5.42%, as the Bank of England (BoE) holds the interest rate at 3.75%<\/li>\n
- \tUK inflation rate eases to 2.8% from 3.3% in April.<\/li>\n
- \tAverage rent in London increases by 2%.<\/li>\n<\/ul>\n
Despite slower price growth, London is still far ahead<\/h2>\n
![\"View](\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/06\/view-of-city-skyline.webp\")
<\/p>\nAlthough average prices in the capital increased by only 0.8% in May, the value increase was over \u00a35,000, compared to the average price growth of \u00a34,333 across the UK. At \u00a3685,347, the average London home still costs more than 81% the UK average of \u00a3378,304. According to Zoopla, the average price of a first-time buyer home in London crossed \u00a3500,000<\/a> for the first time last month.<\/p>\n
Sales are up despite a drop in buyer demand <\/h2>\n
Total sales agreed this May were 1% higher than last year, even though buyer demand dropped by 10%. London recorded the highest figures across all regions, with agreed sales up 8% YoY, which explains why house price inflation has stabilised after six consecutive months of modest corrections. However, price growth is expected to remain moderate as there are 13% more homes for sale than a year ago.<\/p>\n
Correct pricing is crucial for quick sales<\/h2>\n
Almost a third of all homes listed for sale are seeing a price reduction, calling for sellers to price carefully for a successful sale. Homes that did not need any price reductions sold in just 36 days compared with the average of 127 days required for those properties that needed a price reduction. You can use our free, no-obligation valuation service<\/a> to get an accurate estimate of your property for sale or to rent.<\/p>\n
Mortgage affordability improves as the BoE holds the interest rate<\/h2>\n
![\"BOE](\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/06\/boe-building.webp\")
<\/p>\nRightmove\u2019s daily mortgage tracker reported a slight fall in the average two-year fixed rate from 5.42% in April to 5.18% in May. This drop came in as the Bank of England held its base rate at 3.75% in its last MPC meeting at the end of April.<\/p>\n
Upcoming International property showcases, launches and private consultations<\/h2>\n
![\"The](\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/05\/a-new-level-of-living-at-the-orien-from-day-one.webp\")
<\/p>\nOur international offices wrapped up some successful showcases of The Orien at The Green Quarter<\/a> and Sutton Garden Square<\/a> in Malaysia<\/a>, as well as King\u2019s Road Park<\/a> in Singapore<\/a>. Next up, our India<\/a> and Indonesia<\/a> offices have an exciting event line-up planned for the coming months. <\/p>\n
Our teams in Delhi and Mumbai will host an exclusive showcase of a brand-new development in Wimbledon<\/a>, followed by events in Hyderabad and Bangalore to present Oval Village<\/a> in Zone 1 and The Exchange Watford<\/a>. Meanwhile, our team in Jakarta will host private consultations for investors looking to learn more about Berkeley Group\u2019s London Collection<\/a>. <\/p>\n
Rental growth in London improves marginally<\/h2>\n
The Office for National Statistics (ONS) reported a growth of 3.5% in average monthly rents<\/a> across the UK for the 12 months to April 2026. This was marginally higher than the 3.4% growth reported in the previous month. At 6.5%, regional rent inflation was highest in the North East, while London recorded the lowest growth figures of 2%. However, average rent in the capital rose by 1.7% from the previous month.<\/p>\n
Despite sluggish market performance in recent months, average monthly rents in London at \u00a32,290 are still more than 60% higher than the national average of \u00a3 1,438 per month.<\/p>\n
Helping landlords comply with the Renters\u2019 Rights Act<\/h2>\n
![\"Renters](\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2024\/09\/Renters-Reform-Bill.webp\")
<\/p>\nThe much-talked-about Renters\u2019 Rights Act<\/a> finally came into effect this May, bringing in a new wave of legislation that tightens the rules around tenancy agreements, no-fault evictions, bidding bans and frequent rent increases. As a trusted London-based estate and lettings agency with a legacy of over 65 years, we are helping landlords come up to speed with all the necessary information and support. <\/p>\n
With seasoned lettings experts across all our 21 branches in the UK capital<\/a> and several international offices<\/a>, overseas investors and landlords can be assured of full compliance with all the rules. <\/p>\n
If you are an investor looking to buy or rent a property in London, contact us<\/a> to know more.<\/p>\n