London real estate market — prices, rental yield and trend
- Gross rental yield: 4.92%
- 12-month price change (USD): -4.17%
- Net rental yield: 4.01%
- Transaction cost: 9.8%
- Price basis: local-market average
London is one of the 156 property markets Glopra tracks.
What a buyer pays in London
Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 9.8% of the price here. That is close to the 9.5% median across the set.
What it earns
The typical home here lets for about $3,089 a month against a purchase price of $753,732, which is 4.9% gross before tax. Neither figure is quoted per square metre in this market, but both come from the same source, so the ratio between them holds. It ranks 88th of 151 markets by gross yield. Rental income is taxed at 0–19.3% — the rate is not a single number here. The 4% net figure we publish uses 18.5%.
How the tax works. 18.51% is the conservative case: the 20% basic rate after the £1,000 property allowance, assuming no personal allowance. The decisive question is the £12,570 personal allowance, which non-residents receive only if they are UK or EEA nationals or resident in a treaty country whose treaty grants it; with it, rent at typical levels is fully covered and the tax is 0% — the lower end of the band. The 20% Non-Resident Landlord Scheme withholding is a payment on account, not a final tax, and Scottish rates do not apply to property income. Source: gov.uk / LITRG.
Who can buy in London
Freehold unrestricted; flats are often leasehold. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.
How this figure is built
The price figure for London is built from recorded transaction prices. It was last refreshed on 2026-10-15. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way, which is what lets London be compared with a country average or another city.
Sources: ONS bulletin · ons.gov.uk · api.frankfurter.dev (2026-10-15). Snapshot: 2026-10-15.
Latest London market analysis
- UK house prices: surveyor balance falls to -32% in September 2026 — 2026-10-08
- UK Annual House Price Growth Halved to 0.8% in September, the Weakest Since December 2025 — 2026-10-01
- UK Residential Property Transactions Slipped to 95,220 in August, 2% Below Last Year — 2026-09-30
- UK Mortgage Approvals Fell to 54,900 in August as New Loan Rates Reached 4.60% — 2026-09-29
- England Granted Permission for 212,000 Homes in the Year to June, 12% Fewer Than a Year Earlier — 2026-09-24
- UK Asking Prices Rose 0.7% in September, the First Monthly Gain Since May — 2026-09-22
- The Bank of England Held Bank Rate at 3.75% as Three Members Voted to Raise It — 2026-09-19
- UK Rents Rose 3.8% in August While House Price Growth Slowed to 1.4% — 2026-09-17
- UK House Price Balance Steadies at -28% in August, RICS Survey Finds — 2026-09-12
- UK House Prices Fell 0.4% Over the Year in August on the Lloyds Index — 2026-09-08
- UK Mortgage Approvals Fell to 56,053 in July, the Fewest Since January 2024 — 2026-09-04
- UK House Prices Held a 1.6% Annual Rise in August as the Average Slipped to £275,465 — 2026-09-01
Related markets: United Kingdom