The average residential sale price in London decreased by 0.5 per cent year‑over‑year across all property types in 2025, dipping from $644,090 to $640,886. Sales transactions also declined by 3.6 per cent during the same period (from 6,280 to 6,057). Meanwhile, the total number of listings rose by 25.1 per cent, increasing from 2,297 in 2024 to 2,873 in 2025. Average residential sale prices are expected to remain stable heading into 2026, with sales anticipated to rise by approximately 5 per cent compared to 2025.
Trends in the London Housing Market
Looking ahead to 2026, London is expected to remain a buyer’s market as gradually declining interest rates improve affordability. The most desirable neighbourhoods in the region are projected to include East London and South London, both driven by strong affordability and home prices below $600,000. East London offers walkable communities and value-driven options, while South London is favoured for its convenience and perceived safety. Single‑detached homes are expected to see the strongest demand and sales activity in 2026.
Buying and Selling Trends for 2026
First-time homebuyers are gravitating toward move‑in‑ready townhomes, condos, and smaller detached homes priced between $400,000 and $550,000.
Move-up and move-over buyers are focusing on properties with larger yards in family‑friendly communities, typically ranging from $700,000 to $900,000.
Retirees are downsizing to lower‑maintenance homes offering single‑floor living—such as condominiums, bungalows, and townhomes. Many are choosing “active adult” communities with convenient access to medical services and other amenities.
New-home construction in the region is largely focused on townhomes and semi‑detached properties, while single‑family projects continue to slow.
Economic and Market Influences
Declining interest rates are expected to boost buyer confidence and activity in 2026, particularly among first-time buyers and those moving up. However, if rates rise again, market momentum could weaken. Economic uncertainty in the automotive sector continues to influence job security in the region, causing some potential buyers to pause their purchasing plans until conditions stabilize.
Technology’s Role in the Home Search
Technology has transformed how buyers search for homes in London. Many begin their journey online, using MLS platforms, virtual tours, and social media to preview listings before booking showings. AI‑powered tools are helping buyers find suitable properties more efficiently, while agents are leveraging targeted social advertising and personalized content to reach specific audiences.
