London house prices rose 'by the cost of Louis Vuitton bag' last year
London homeowners have seen their property rise on average by £4,000 in the last 12 months throughout the capital.
UK property enjoyed a 0.3% month-on-month rise in this week's House Price Index as well as a 2.8% annual growth over the last 12 months according to Purplebricks Mortgages.
The data shows that homes across London had a mixed year with 20 boroughs seeing an increase in house prices and 13 losing out.
Barking and Dagenham saw an 8% increase since last summer, adding £27,770 to the price of homes in the area which are now on average costing £360,648.
Waltham Forest also added £27,687 to property prices in the area as homes saw a rise in their price tag to above half a million pounds, an average of £512,726.
London dominated the monthly gains chart from June to July 2025 with Camden, Watford and Hackney all enjoying significant price rises.
Camden homes rose 3% from June 2025, worth an extra £28,523 to price tags in the area.
Similarly, Watford in Hertfordshire - one of the biggest commuter towns to London also saw a positive monthly price rise worth 6%, adding £25,527 to the average property.
Hackney homes saw a 4% increase on house prices over the last month, which added £22,713 to values.
The biggest loser in the HPI report was Kensington and Chelsea, down 5% month-on-month, and 3% annually, worth £34,041.
Regardless, the average home in the exclusive west London borough still stands at just over £1.3million.
Westminster homes saw an annual price-plunge of 5%, shedding £46,873 off the value of properties in the national’s political heartland, where values now average £976,519.
House prices in England saw an annual price rise of 2.7%, making the average property worth £291,852. Wales had a 2.0% increase and homes now stand at £209,178 on average.
North of the border in Scotland there was a 0.5% monthly increase but an even better annual rise of 3.3%, meaning the average Scottish home now costs around £192,050.
Robert Nichols, managing director of Purplebricks Mortgages said: “Lower mortgage rates coupled with a falling Bank of England base rate is encouraging more movement in the market.
“Those twin factors are nudging thousands of Brits - who were previously resigned to stay put - to start home-hunting again. This steady increase in demand is fueling house price rises.
“While that might sound like bad news for home-hunters, both lower mortgage rates and the Bank of England’s changes to borrowing rules to help first-time buyers means there is more hope for those wanting to get a foot on the ladder.”
Tom Evans, sales director at Purplebricks Estate Agency said: “The good news keeps on coming for homeowners across the UK, including those wanting that first foot on the ladder.
“We’re confident the upward trend in house prices will continue into next year.”