{"id":28925,"date":"2026-07-07T05:28:05","date_gmt":"2026-07-07T04:28:05","guid":{"rendered":"https:\/\/www.benhams.com\/news\/?p=28925"},"modified":"2026-07-07T05:28:05","modified_gmt":"2026-07-07T04:28:05","slug":"june-2026-uk-property-market-update","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/news\/london-property-market\/june-2026-uk-property-market-update\/","title":{"rendered":"London stays resilient despite an unusual UK price drop"},"content":{"rendered":"<p><a href=\"https:\/\/www.rightmove.co.uk\/news\/house-price-index\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Rightmove reported a 0.6% fall<\/a> in the average price of properties coming to market in June 2026. This is the largest June price drop in the last 14 years, as sellers look to catch buyer attention amid an unusual heatwave and the ongoing FIFA World Cup. However, despite this nationwide drop, prices in the capital remained resilient, rising 0.3% YoY.<\/p>\n<h2>Key highlights from June 2026<\/h2>\n<ul class=\"icon-listing dot-icon mb10\">\n<li>\tAverage new seller prices across the UK dropped by 0.6%<\/li>\n<li>\tPrices in London are up by 0.3%, with the highest monthly growth in Kensington &#038; Chelsea at 2%<\/li>\n<li>\tThe two-year average fixed mortgage rate drops to 5.07% from 5.18% <\/li>\n<li>\tThe Bank of England (BoE) holds the interest rate at 3.75%<\/li>\n<li>\tAverage rent in London increases by 2%.<\/li>\n<\/ul>\n<h2>Price corrections fuel buyer demand in London<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/london-homes.webp\" alt=\"London homes\" width=\"972\" height=\"546\" class=\"aligncenter size-full wp-image-28927\" srcset=\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/london-homes.webp 972w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/london-homes-300x169.webp 300w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/london-homes-768x431.webp 768w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/london-homes-150x84.webp 150w\" sizes=\"auto, (max-width: 706px) 89vw, (max-width: 767px) 82vw, 740px\" \/><\/p>\n<p>Buyers have been attracted by the recent wave of price corrections across the capital, as it now takes 68 days to secure a buyer in London, compared with 89 days at the start of the year. In addition to its market resilience, London is also far ahead in terms of price valuesing, with the average property costing \u00a3687,080. This is nearly 83% more than the national average of \u00a3376,191.<\/p>\n<h2>Kensington &#038; Chelsea lead London price growth <\/h2>\n<p>The most premium Borough in the capital is also the one leading the price growth charts. The average <a href=\"https:\/\/www.benhams.com\/sold-house-prices\/kensington\/\">property price in Kensington<\/a> &#038; <a href=\"https:\/\/www.benhams.com\/sold-house-prices\/chelsea\/\">Chelsea<\/a> increased by 2% in June to cross \u00a31.7m. This was followed by a monthly growth of 1.4% in the Boroughs of Brent and Barnet, followed by a 1.2% increase in <a href=\"https:\/\/www.benhams.com\/sold-house-prices\/haringey\/\">Haringey<\/a> and <a href=\"https:\/\/www.benhams.com\/sold-house-prices\/hackney\/\">Hackney<\/a>.<\/p>\n<div class=\"table-responsive mb20\">\n<table class=\"press-table textfLeft table-fixed font-14\" border=\"1\">\n<thead>\n<tr class=\"bg-table-blue\">\n<th style=\"text-align:center;\">London Borough<\/th>\n<th>Avg. price in June 2026<\/th>\n<th>Monthly price growth<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Kensington &#038; Chelsea<\/td>\n<td>\u00a31,706,486<\/td>\n<td>2.0%<\/td>\n<\/tr>\n<tr>\n<td>Brent<\/td>\n<td>\u00a3619,005<\/td>\n<td>1.4%<\/td>\n<\/tr>\n<tr>\n<td>Barnet<\/td>\n<td>\u00a3718,790<\/td>\n<td>1.4%<\/td>\n<\/tr>\n<tr>\n<td>Haringey<\/td>\n<td>\u00a3709,395<\/td>\n<td>1.2%<\/td>\n<\/tr>\n<tr>\n<td>Hackney<\/td>\n<td>\u00a3733,769<\/td>\n<td>1.2%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2>Market activity is consistent with previous years, despite a minor dip<\/h2>\n<p>The heatwave in May caused a slight fall in buyer demand, as home-movers looked to wait out the rise in mercury levels. Despite the number of newly listed homes coming to market being down 5% YoY, it is still 6% higher than in 2024 and 12% higher than in 2023. Overall, agreed sales were also level with 2024 and 5% higher than 2023.<\/p>\n<h2>Mortgage rates ease as inflation holds steady<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/03\/mortgage-arrangement-and-broker-fees.webp\" alt=\"Mortgage rate\" width=\"1200\" height=\"675\" class=\"aligncenter size-full wp-image-28412\" srcset=\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/03\/mortgage-arrangement-and-broker-fees.webp 1200w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/03\/mortgage-arrangement-and-broker-fees-300x169.webp 300w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/03\/mortgage-arrangement-and-broker-fees-1024x576.webp 1024w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/03\/mortgage-arrangement-and-broker-fees-768x432.webp 768w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/03\/mortgage-arrangement-and-broker-fees-150x84.webp 150w\" sizes=\"auto, (max-width: 706px) 89vw, (max-width: 767px) 82vw, 740px\" \/><\/p>\n<p>Mortgage affordability improved as Rightmove reported a slight drop in the average two-year fixed rate to 5.07% from 5.18%, resulting in an average monthly savings of up to \u00a330. In an attempt to keep inflation low and stable, the Bank of England (BoE) held its base rate at 3.75% as inflation remained unchanged at 2.8%.<\/p>\n<h2>International property showcases, launches and private consultations<\/h2>\n<p>June was a busy month for our overseas offices as they wrapped up several successful property exhibitions and new-phase launches and held private sessions with investors. While our teams in <a href=\"https:\/\/www.benhams.com\/international\/hong-kong\/\">Hong Kong<\/a> and <a href=\"https:\/\/www.benhams.com\/international\/singapore\/\">Singapore<\/a> hosted the launch of the new phase of <a href=\"https:\/\/www.benhams.com\/new-homes\/london-square-london\/\">London Square Bermondsey<\/a>, our <a href=\"https:\/\/www.benhams.com\/international\/india\/\">offices in India<\/a> held private investor consultations for <a href=\"https:\/\/www.benhams.com\/new-homes\/wimbledon\/\">new homes in Wimbledon<\/a>. Our office in <a href=\"https:\/\/www.benhams.com\/international\/indonesia\/\">Indonesia<\/a> showcased <a href=\"https:\/\/www.benhams.com\/london\/discover-berkeley-capital-luxury-homes\/\">Berkeley Group\u2019s London collection<\/a> in Jakarta.<\/p>\n<figure id=\"attachment_28901\" aria-describedby=\"caption-attachment-28901\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/03\/Royal-Arsenal-Riverside-Woolwich-SE18.webp\" alt=\"Royal Arsenal Riverside\" width=\"1200\" height=\"675\" class=\"size-full wp-image-28901\" \/><figcaption id=\"caption-attachment-28901\" class=\"wp-caption-text\">Royal Arsenal Riverside<\/figcaption><\/figure>\n<p>Next up, our Hong Kong office is all set to host exhibitions for <a href=\"https:\/\/www.benhams.com\/new-homes\/royal-arsenal-riverside-london\/\">Royal Arsenal Riverside<\/a> and <a href=\"https:\/\/www.benhams.com\/new-developments\/kidbrooke-village-london\/\">Kidbrooke Village<\/a>. Meanwhile, our offices in India will host events in Hyderabad and Bangalore to present <a href=\"https:\/\/www.benhams.com\/new-homes\/oval-village-283-kennington-lane-se11\/\">Oval Village<\/a> and <a href=\"https:\/\/www.benhams.com\/new-homes\/the-exchange-watford-wd24\/\">The Exchange Watford<\/a> this July. Our Singapore and Japan offices will also host a lettings and property management clinic and seminar for investors.<\/p>\n<h2>Rental growth is slow but steady<\/h2>\n<p>The Office for National Statistics (ONS) reported a <a href=\"https:\/\/www.ons.gov.uk\/economy\/inflationandpriceindices\/bulletins\/privaterentandhousepricesuk\/june2026\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">growth of 3.3% in average monthly rents<\/a> across the UK for the 12 months to May 2026. This was slightly below the 3.5% growth recorded in the previous month. Rental growth in London remained unchanged at 2% from the previous month; however, average rent in the capital is still the highest at \u00a32,294, which is more than 66% the national average of \u00a31,383.<\/p>\n<h2>London is experiencing the highest rental demand<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/highest-rental-demand.webp\" alt=\"Rental demand\" width=\"1200\" height=\"675\" class=\"aligncenter size-full wp-image-28928\" srcset=\"https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/highest-rental-demand.webp 1200w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/highest-rental-demand-300x169.webp 300w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/highest-rental-demand-1024x576.webp 1024w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/highest-rental-demand-768x432.webp 768w, https:\/\/www.benhams.com\/news\/wp-content\/uploads\/2026\/07\/highest-rental-demand-150x84.webp 150w\" sizes=\"auto, (max-width: 706px) 89vw, (max-width: 767px) 82vw, 740px\" \/><\/p>\n<p>According to Zoopla\u2019s recent <a href=\"https:\/\/www.zoopla.co.uk\/discover\/property-news\/rental-market-report\/\">rental market report<\/a>, London is the only region in the UK experiencing a high rental demand of 6%. This is largely driven by higher mortgage rates and a limited supply, which is nearly 25% below pre-pandemic levels. With the average earnings growing at twice the rate of rental inflation, affordability has been improving for three consecutive years. <\/p>\n<h2>Full compliance and personalised lettings strategy with Benham and Reeves<\/h2>\n<p>With the <a href=\"https:\/\/www.benhams.com\/landlord\/renters-rights-act-implementation-roadmap\/\">Renters\u2019 Rights Act<\/a> coming into effect last month, UK landlords now need to adjust and adapt to several new regulations. Our team of professional lettings experts ensures full compliance with all the new rules while also helping <a href=\"https:\/\/www.benhams.com\/news\/landlords\/tips-for-securing-the-best-rental-returns-in-london\/\">landlords maximise their rental income<\/a>. We have <a href=\"https:\/\/www.benhams.com\/contact\/\">21 branches across London<\/a> and <a href=\"https:\/\/www.benhams.com\/international\/offices\/\">several international office<\/a>s, providing a <a href=\"https:\/\/www.benhams.com\/services\/\">one-stop property buying, lettings and management service<\/a> to overseas homebuyers, landlords and investors.<\/p>\n<p>If you are an investor looking to buy or rent a property in London, <a href=\"https:\/\/www.benhams.com\/contact\/\">contact us<\/a> to know more.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 in the last 14 years, as sellers look to catch buyer attention amid an unusual heatwave and the ongoing FIFA World Cup. However, despite this nationwide drop, prices in the capital &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.benhams.com\/news\/london-property-market\/june-2026-uk-property-market-update\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;London stays resilient despite an unusual UK price drop&#8221;<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":28931,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[451],"tags":[],"class_list":["post-28925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-london-property-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/28925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/comments?post=28925"}],"version-history":[{"count":4,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/28925\/revisions"}],"predecessor-version":[{"id":28932,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/28925\/revisions\/28932"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media\/28931"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media?parent=28925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/categories?post=28925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/tags?post=28925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}