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Londoners face a significant hit to their property buying power due to increased mortgage rates. Buyers in the capital now need an additional £35,500 for a deposit to afford the same home with identical monthly repayments.
House prices in London have seen an annual decline of 3.1% in the 12 months to July 2026, with the average asking price now standing at £646,451. Commuter towns such as Haywards Heath and Maidenhead experienced more significant drops.
Luxury property developer London Richmond Limited has entered administration, appointing BTG Begbies Traynor as administrators on 12 August 2026. The collapse follows an 8-year record fall in UK house prices, with London’s average asking price dropping 3.1% annually, according to Rightmove.
Sales of new homes in London fell to 5,606 in the first half of 2026, a 37% drop on 2025. 4,629 completed units remain unsold, valued at £3.5bn, while 56 developments totalling 3,913 homes have been paused across the capital.
Waltham Forest Council is considering a 310-room co-living development in Wood Street, while a second 319-room scheme is proposed for the troubled Stow Bazaar site on Walthamstow High Street. Both projects promise communal spaces and green design, but local traders report security and maintenance failures at the current market.
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