London house prices soar £12,000 in a year - with homeowners in Kingston and Bromley seeing biggest gains
London homeowners have seen the value of their properties increase by more than £10,000 over the last year - as the UK enjoys a property boom.
Property values in the capital fell around 1.4% month-on-month but the annual price change of 2.2% has left Londoners delighted as it adds an additional £12,444 to price tags.
Homes in the capital are worth £565,637 with many areas performing among the best in the country.
Among the big winners in this week’s House Price Index report are commuter towns, suggesting the post-pandemic return to the office could be having an effect.
Homeowners in the London commuter area of Three Rivers in Hertfordshire were the biggest winners across the board with a 13% annual increase on property prices, equivalent to £79,058.
Kingston-Upon-Thames and Bromley were the next two biggest increases at 8% and 9% respectively, adding £48,363 and £47,951 to the price tags of homes in the London suburbs.
| LONDON HOUSE PRICE WINNERS - money gained | May 2025 vs May 2024 | |
| Area | Percentage decrease YOY | Money lost |
| 1. Kingston upon Thames | 8% | £48,363 |
| 2. Bromley | 9% | £47,951 |
| 3. Hounslow | 9% | £47,094 |
| 4. Haringey | 7% | £46,416 |
| 5. Waltham Forest | 9% | £46,099 |
| 6. Southwark | 8% | £45,490 |
| 7. Havering | 10% | £43,728 |
| 8. Hillingdon | 8% | £40,584 |
| 9. Camden | 4% | £35,762 |
| 10. Lewisham | 6% | £31,986 |
It was the capital that also dominated the monthly gains chart from April to May 2025 with Camden, the City of London and Kensington and Chelsea seeing prices rise again.
Camden homes rose 9% from April 2025, worth a jaw-dropping increase of £78,502.
Similarly, the City of London saw positive monthly price rises of 8%, adding £68,379 to the average property in the UK’s financial heartland.
Homes in upmarket Kensington and Chelsea, famed for the E4 reality show, saw prices lift by 3% month-on-month, equivalent to £43,880.
| LONDON HOUSE PRICE LOSERS - money lost | May 2025 vs May 2024 | |
| Area | Percentage decrease YOY | Money lost |
| 1. City of London | -9% | -£77,441 |
| 2. City of Westminster | -6% | -£56,530 |
| 3. Islington | -8% | -£53,381 |
| 4. Hammersmith and Fulham | -6% | -£45,522 |
| 5. Barnet | -4% | -£24,197 |
| 6. Hackney | -2% | -£13,911 |
| 7. Wandsworth | -1% | -£10,051 |
| 8. Tower Hamlets | -2% | -£7,189 |
| 9. Bexley | -1% | -£3,156 |
| 10. Newham | -1% | -£2,099 |
Throughout the capital, 14 boroughs saw the property prices boom, 13 saw a month-on-month loss while six had no price change at all, staying the same as last month’s House Price Index.
Tom Evans, sales director at Purplebricks Estate Agency said: “Great news once again for the nation’s homeowners, and at a promising time for first-time buyers too.
“The falling interest rates over the last 12 months has helped drive down mortgage rates and drive up property prices - and the forecast base rate cut in August should continue that trend.
“We are confident house prices will continue to rise into next year, meaning your home at the start of 2026 will be worth more than it is today.”
Robert Nichols, managing director o f Purplebricks Mortgagessaid: “This is the best time to be a first-time buyer in recent years.
“Lower interest rates, means lower mortgage rates. And, while that is pushing up house prices, it also acts as a confidence booster to would-be buyers that owning property pays dividends.
“And, the government’s new ‘Helping Hand’ scheme for first-time buyers - making more mortgages available at 4.5 times a buyer’s income - will drive more movement in the market.”