London Flat Prices Fall at Fastest Pace in 17 Years as Shared Ownership Caps Rise
New property reports show four in five London homes have shed value amid soaring mortgage costs, while shared ownership income caps are set to rise and a landlord has lost an OBE after a housing fine.
Residential property values across the capital are declining amid soaring mortgage costs, according to multiple market reports published this week. City AM reported on Tuesday that four in five London homes have shed value as mortgage costs soar. Separate figures reported by The Telegraph on Monday show that London flat prices are falling at their fastest pace for 17 years. Broader regional reports from The Telegraph, AOL.com and London Now on Tuesday also show that London house prices and property values in the South East have dipped, while The Negotiator reported that Zoopla has recorded a price slump across London and the South East.
Alongside the downturn in property values, new policy announcements and planning reviews are emerging for the capital's housing sector. Housing Today reported on Monday that Pennycook has announced the raising of income eligibility caps for shared ownership schemes. Meanwhile, Estates Gazette published an analysis on Monday examining the build-to-rent sector within the Draft London Plan, and the London Evening Standard set out what the Chancellor is being urged to do in Budget 2026 to tackle London's housing crisis.
The drop in prices comes as major developers pause construction work in the capital.
The drop in prices comes as major developers pause construction work in the capital. Inside Housing Living reported on Monday that Landsec and British Land are mothballing giant projects in what the publication described as a twin housebuilding blow for London. Addressing building quality and costs on Monday, a report in The Developer highlighted arguments that the industry should not accept that it cannot afford to build as well as it once did.
Enforcement action and personnel moves have also been recorded in the London property sector this week. The Cool Down reported on Monday that King Charles has stripped a London landlord of an OBE following a $400,000 housing fine over poor conditions. Separately, Estate Agent Today reported on Tuesday that an agency has recruited a London property expert who spent 20 years with a rival firm.
Sources
- Estate Agent Today: Agency swoops for London expert after 20 years with rival firm
- The Telegraph: House prices dip in London and the South East
- City AM: Four in five London homes shed value as mortgage costs soar
- London Now: London house prices are falling – here's what the figures show
- The Developer: “I'm not prepared to accept that we can’t afford to build as well as we once did”
- London Evening Standard: Budget 2026: What Chancellor must do to tackle London's housing crisis
- The Negotiator: Prices slump in London and South East, reports Zoopla
- Housing Today: Pennycook announces raising of shared ownership income eligibility caps
- Inside Housing Living: News - Twin housebuilding blow for London as Landsec and British Land mothball giant projects
- AOL.com: House prices dip in London and the South East
- The Telegraph: London flat prices fall at fastest pace for 17 years
- The Cool Down: King Charles strips London landlord of OBE after $400,000 housing fine for poor conditions
- Estates Gazette: The Draft London Plan by sector: build-to-rent
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Questions readers ask
How quickly are London flat prices falling?
The Telegraph reported that London flat prices are falling at their fastest pace for 17 years.
Are shared ownership eligibility caps changing?
Housing Today reported that Pennycook has announced the raising of income eligibility caps for shared ownership schemes.
Which developers are pausing construction work?
Landsec and British Land are mothballing giant projects in the capital, according to Inside Housing Living.
Why was a London landlord stripped of an OBE?
The Cool Down reported that King Charles stripped a London landlord of an OBE following a $400,000 housing fine over poor conditions.
Quick quiz
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Eleanor HughesLondon correspondent
Eleanor covers City Hall, TfL and the boroughs.
