The 2025 London Property Forecast| Keating Estates

The 2025 London Property Forecast – What Buyers Need to Know

London’s property market is always evolving, and 2025 is no exception. Following several years of economic adjustment, hybrid working, and lifestyle re-evaluations, the capital’s housing trends are beginning to stabilise. For buyers — whether first-timers, upsizers, or investors — this year presents a clearer outlook, but still requires smart decisions.

At Keating Estates, we’re on the ground daily, speaking to buyers, sellers, and landlords across South London. Here’s our expert take on what to expect from the London property market in 2025 — and how to make it work for you.

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1. House Prices Are Stabilising – With Modest Growth Ahead

After several turbulent years, London prices have largely plateaued in early 2025. However, some key areas — particularly in Zones 2 and 3 — are showing signs of gradual growth.

What’s Driving This:

• Improved interest rate predictability
• Continued demand in high-amenity areas
• Buyers adjusting expectations and re-entering the market

We expect 1–3% annual growth in most areas, with stronger figures in neighbourhoods offering good transport, green space, and school access.

2. Supply Remains Limited

Despite buyer activity increasing, supply remains below pre-2020 levels. Many homeowners are waiting to see further price uplift before listing.

What This Means for Buyers:

• Desirable homes (especially family houses and garden flats) are still competitive
• Be prepared to move quickly and decisively
• Work with agents who have early or off-market access

3. Flats Are Back – Especially with Outdoor Space

One- and two-bed flats that suffered during the lockdown years are now regaining value. Flats with:

• Private balconies or gardens
• Modern EPC ratings (C or better)
• Close transport links

… are now highly sought-after, especially by professionals and first-time buyers.

4. Energy Efficiency Matters More Than Ever

With energy costs and new regulations looming, buyers are now:

• Requesting EPC certificates up front
• Asking about heating systems, insulation, and double glazing
• Factoring energy upgrades into offer decisions

Homes with strong EPCs, modern boilers, and efficient layouts are commanding stronger prices.

5. Mortgage Approvals Are Up – But Caution Remains

The number of mortgage approvals in early 2025 has increased from 2024 levels, but lenders are still prioritising:

• Strong credit history
• Conservative loan-to-value ratios
• Affordability buffers

Buyer Tip:

Get a mortgage in principle before viewing — sellers favour prepared buyers.

6. Investment Areas to Watch

We’re seeing rising buyer interest in:

• SW16 (Streatham & Norwood borders) – more space for your budget
• SE24 (Herne Hill) – strong capital growth, family appeal
• SW12 (Balham beyond the Nightingale Triangle) – quieter streets, good value

Longer commutes are becoming acceptable again for more space, especially with hybrid work setups.

7. Key Buyer Behaviour Trends

Today’s buyers are:

• Spending more time researching neighbourhoods
• Taking energy ratings and broadband speeds seriously
• Willing to pay premiums for ready-to-move-in properties
• Seeking value just outside premium zones

Q&A: London property forecast 2025

Q1: Is now a good time to buy in London? Q2: Are flats a good investment again? Q3: How long do properties stay on the market? Q4: Should I buy now or wait? Q5: Are South London areas still good value?

Ready to Buy Smart in 2025?

Keating Estates offers tailored support, local insight, and exclusive property access across South London. Whether you’re buying your first home or upgrading, we’ll help you move forward with clarity and confidence.

Visit: www.keatingestates.com
Call: 020 7274 3111
Email: info@keatingestates.com