London house prices soar by almost £5K in a year - with homeowners in Camden and City of Westminster seeing biggest gains
London homeowners have seen the value of their properties increase by nearly £5,000 over the last year - as the UK enjoys a property boom.
Property values in the capital rose by 1% month-on-month with an annual price change of 1% also leaving Londoners delighted as it adds an additional £4,490 to price tags.
Homes in the capital are worth £561,309 with many areas performing among the best in the country according to Purplebricks Mortgages.
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.
It was the capital that also dominated the monthly gains chart from May to June 2025 with Camden, the City of London and City of Westminster seeing prices rise again.
Camden homes rose 4.7% from May 2025, worth a jaw-dropping increase of £41,175.
Similarly, the City of London saw positive monthly price rises of 3.7%, adding £31,288 to the average property in the UK’s financial heartland.
Homes in the political City of Westminster including world-famous 10 Downing Street, saw prices lift by 4.6% month-on-month, equivalent to £47,625.
Throughout the capital, 22 boroughs saw the property prices boom and 12 saw a month-on-month loss in the House Price Index.
Tom Evans, sales director at Purplebricks Estate Agency said: “Great news again for the homeowners across the nation. First-time buyers will also be rejoicing.
“The falling interest rates over the year combined with an ever improving forecast after the Bank of England base rate cut earlier this month should continue to see mortgage rates falling with property prices getting higher.
“Here at Purplebricks we are confident that house prices should keep rising into next year, meaning that by the start of 2026 there is even more money to be made on your property.”
Robert Nichols, managing director of Purplebricks Mortgages said: “Now is the best time in a while to be looking to be a first-time buyer.
“Interest rates, especially lower interest rates now mean that mortgage rates will be lowered as more people become eligible for a mortgage which will see house prices rise with excess demand.
“Many buyers who might be sitting on the sidelines with money ready to invest in a starter home should be ready to make this Autumn their time to buy.”