London Housing Market Correction
As affordability pressures intensify, the London housing market is entering a new phase of adjustment driven by higher mortgage costs, weaker investor demand and changing buyer behaviour. London house prices have fallen materially in real terms since 2021, with the correction most visible in flats and ultra-prime homes as the market recalibrates after the mortgage-rate reset.
Affordability Pressures and Market Impact
This analysis explores how housing affordability, property valuations and housing mobility are reshaping market conditions across London. It assesses the implications for residential property investment, buy-to-let markets and regeneration-led developments, while examining why pricing pressure is broadening beyond the most exposed segments and what that could mean for future market stability.
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