Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
Inner and Outer London Property Prices Reflect North-South Divide
Recent data from E.surv, reported by The Negotiator, highlights significant differences in property price trends between inner and outer London. The analysis shows that while average London prices are down year-on-year, the decline is sharper in inner boroughs compared to outer areas.
According to the report, inner London property prices have fallen by 8.7% year-on-year, whereas outer London has seen a smaller decrease of 2.6%. The average price in inner London stands at £687,415, compared to £518,655 in outer London, creating a gap of nearly £169,000. The most expensive parts of the capital are experiencing the steepest declines, while outer London has shown more resilience, with some annual price growth observed through much of 2024 and early 2025.
The report also notes that 17 out of 30 tracked UK cities have yet to recover to 2022 price levels. Additionally, a similar number of cities are seeing property prices rise at a rate lower than inflation, which has increased by 16% over the same period.
Inner London Flats Under Pressure
The flat market in London is highlighted as a key area of weakness, particularly in inner boroughs. Inner London flat prices are now 11.2% below April 2020 levels, with the index at 88.8 in April 2026. In contrast, outer London flats remain 4.1% above their April 2020 level, despite some recent softening.
The analysis attributes the sharper decline in inner London flats to several factors, including higher mortgage rates, increased service charges, and running costs. The end of Help to Buy and a larger supply of apartment stock in some inner London markets are also cited as contributing factors. Tax changes, such as higher stamp duty for overseas buyers and the introduction of a ‘mansion tax’ from 2028, are expected to impact higher-value homes, particularly in inner London.
For letting agents and inventory clerks, these trends suggest a more price-sensitive market in inner London, especially for flats. Weaker demand, higher buyer costs, and increased competition may influence rental yields and property turnover in the coming years.
Source: The Negotiator