London’s housing market price an estimated £2.6trn

The full worth of London’s 3.8 million houses has reached an estimated £2.64trn, in response to new analysis from Zoopla.

Though the capital has trailed behind a lot of the UK by way of home worth development over the previous decade, London’s property market nonetheless represents a big share of nationwide wealth — virtually 24% of the UK’s whole residential property market, which stands at round £10.8trn.

A breakdown of the capital’s 32 boroughs reveals the size and distribution of this worth. The Metropolis of Westminster tops the listing as London’s most respected housing market, price £175.1bn – equal to six.7% of the town’s whole.

Collectively, the highest 5 boroughs – Westminster, Kensington and Chelsea, Wandsworth, Camden, and Barnet – maintain greater than £700bn in mixed housing worth, representing 21% of London’s whole market.

Whereas the celebrated boroughs of Westminster, Kensington and Chelsea, and Wandsworth paved the way by way of whole residential worth, different high-priced areas resembling Richmond upon Thames and Hammersmith and Fulham contribute much less to the general determine than extra reasonably priced however densely populated boroughs like Southwark and Lambeth.

Regardless of decrease median home costs, the 5 most reasonably priced boroughs — Barking and Dagenham, Croydon, Lewisham, Newham, and Bexley — collectively account for 11% of London’s whole housing worth. That is largely pushed by the quantity of housing inventory, as these areas comprise round 16% of the capital’s houses, despite the fact that particular person property values sit under the town’s common.

Prime 5 worth of housing by London borough 

Supply: Zoopla Analysis 2025

In outer London, which options 56% of the capital’s residential properties, Barnet is the highest-value borough with a mixed residential housing worth of £117.6bn.

With the second highest quantity of houses after Croydon, the worth of the realm is pushed up by the variety of household houses, somewhat than the median home worth, which sits at a mid-range of £562,600.

Collectively, the outer London boroughs account for a big 49% of the overall residential worth of London. After Barnet, boroughs like Ealing (£92bn) and Bromley (£90bn) paved the way by way of general housing worth, once more largely pushed by the sheer quantity and density of houses.

Prime 5 most reasonably priced housing by London borough 

Supply: Zoopla Analysis 2025

The analysis reveals the sheer scale of London’s residential market worth, which stays akin to the world’s largest financial entities and firms, regardless of being impacted by latest financial headwinds resembling Brexit, the pandemic and sustained excessive rates of interest. At an estimated £2.6trn, the market worth exceeds the mixed market capitalisation of all FTSE 100 firms [£2.5trn].

Nevertheless, regardless of the size of the worth of housing in London, the capital has seen a protracted interval of weaker home worth inflation, largely impacted by the excessive price of housing. During the last decade, inside London house values have risen by 10% (lower than 1% a yr), considerably beneath performing the 41% improve in common UK house values over the identical interval.

Moreover, slower home worth inflation in inside London, brought on by a softening of demand resulting from financial and tax adjustments, has shifted the steadiness inside the capital. This explains why the distinction in general housing worth between inside and outer London is nearer than could be anticipated – the quantity of houses in outer London outweighs the decrease quantity of upper worth houses in inside London.

Richard Donnell, govt director at Zoopla, stated: “London’s housing market stays essentially the most useful market within the UK, however larger house values have created affordability issues which have held again home worth inflation over the past decade in comparison with the UK as an entire. Earnings are rising sooner than home costs which helps to reset affordability and opening up extra alternatives for householders to maneuver house whereas broadly static house costs in inside London are presenting growing alternatives for savvy house consumers”