Is Now the Right Time to Buy in London? Explore What 2025 Means for International Buyers

Is now a good time to buy in London, or should you wait?

With more properties on the market and prices under pressure, buyers in 2025 face a rare moment of choice. According to Rightmove’s July House Price Index, the average UK asking price fell by 1.2% month-on-month, with London recording the steepest regional drop: 1.5% overall and 2.1% in inner boroughs. Inventory is at a decade-high, meaning more sellers are competing for fewer active buyers.

Zoopla confirms the trend: national price growth slowed to 1.3% amid a 12% increase in listings.

Yet buyer demand hasn’t disappeared, sales are up 5% year-on-year, and enquiries rose 6%, showing that well-priced homes still move quickly. Even Rightmove has cut its 2025 price forecast from 4% to 2%, reflecting intense competition.

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How do mortgage rates and buying power affect the market?

Easing mortgage costs are slowly improving affordability, but rates remain elevated compared with pre‑pandemic norms. Rightmove’s mortgage tracker shows the average two‑year fixed rate has fallen to 4.53%, down from 5.34% last year. For a typical borrower, that equates to a saving of around £150 per month.

However, the Bank of England’s base rate, hovering between 4.5% and 5%, still keeps borrowing costs high. Zoopla notes that relaxed affordability assessments mean buyers can now borrow up to 20 % more than three months ago, stimulating demand despite the higher rates.

Elevated mortgage costs have tempered first‑time buyer budgets, leading many purchasers to delay or downsize. As a result, sellers across London are pricing more competitively to attract serious offers. The high level of supply means discerning buyers can compare multiple new‑build and off‑plan apartments, encouraging realistic asking prices and occasionally developer incentives such as stamp‑duty contributions or mortgage‑rate buydowns.

This environment particularly benefits GCC and Middle‑Eastern buyers purchasing with cash or favourable overseas financing, as their buying power carries greater weight when sellers are keen to negotiate.

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How do conditions vary between central and outer London, and what about new builds?

The market is not uniform: prime central districts remain resilient, while outer boroughs and the mass market tip toward buyers.

Prime Central London remains more balanced because international investors still value exclusivity and scarcity. Outer boroughs, by contrast, are firmly becoming a buyer’s market; the combination of higher supply, flat or falling prices, and cautious domestic demand gives purchasers more leverage. New‑build schemes, especially those near transport hubs like Crossrail or within regeneration zones, are using payment plans and stamp‑duty contributions to attract buyers. For off‑plan opportunities, these incentives can materially improve returns.

How much negotiation power do buyers have today?

Buyers are negotiating not just on price but on terms and extras. Zoopla notes that national buyer demand is 11 % higher, while agreed sales are 8 % up, suggesting a healthy level of activity despite price pressures. The increased supply means developers and motivated sellers are more open to negotiation. Approximately 28 % of listings in London have been reduced at least once in the past three months, compared with 18 % a year ago (based on Entralon’s internal analysis of Rightmove and Zoopla data). Buyers now routinely negotiate appliances, ask for mortgage‑rate buydowns, or request flexible completion dates.

This environment is ideal for GCC buyers seeking new-build apartments in London. Sellers understand that overseas purchasers often transact quickly and without chain complications. By leveraging professional representation, buyers can secure concessions such as upgraded finishes, parking spaces or furnishing packages, benefits that enhance long‑term rental yields when leasing to London’s professional tenants.

Do sellers still have opportunities in a buyer‑leaning market?

Well‑presented, correctly priced homes still sell quickly. Even in a buyer‑friendly environment, properties in sought‑after school catchments, near Crossrail/Elizabeth Line stations or in major employment centres see competitive bidding. Rightmove reports that the number of sales agreed is 5% higher than last year, and enquiries are 6% up, proving that motivated buyers exist when the price is right. Sellers who list at market value, stage their homes effectively and offer flexibility on completion dates can still achieve strong results.

This is especially true for new build developments in high‑growth boroughs. Schemes close to Canary Wharf, Nine Elms or Stratford’s regeneration zones are attracting both domestic and international investors. Partnering with a knowledgeable estate agent ensures your pricing strategy matches local demand and highlights the benefits that resonate with GCC buyers, such as proximity to top schools, professional tenant demand and potential for long‑term appreciation.

Final Thoughts

London’s residential market in mid‑2025 is a mild buyer’s market. Prices are either stagnant or gently falling, supply is abundant and mortgage rates, though easing, are still constraining budgets. For Middle‑Eastern investors seeking new build or off‑plan properties in London, this presents an opportunity to negotiate favourable terms and secure prime units in world‑class locations.

At Entralon, we specialise in connecting GCC buyers with off‑plan projects in Dubai and new‑build apartments in London. Our local expertise and developer relationships help you navigate pricing, incentives and financing options. Whether you’re comparing Kensington penthouses to Dubai Hills villas, our advisors are ready to help you capitalise on today’s market dynamics.

FAQ

Is London currently a buyer’s or seller’s market?
London is leaning toward a buyer’s market. Rightmove’s July 2025 data shows asking prices falling by 1.5 % in London and supply at decade‑high levels, giving buyers more choice and negotiation power.

How have mortgage rates changed in 2025?
Average two‑year fixed mortgage rates have dropped from 5.34 % to 4.53 % over the last year, improving affordability slightly. However, borrowing costs remain higher than the long‑term average, so cash buyers retain an advantage.

Are new‑build properties offering incentives?
Yes. With an abundant supply, many developers are providing stamp‑duty contributions, furniture packages and flexible payment plans, particularly in outer London and regeneration areas. These incentives are attractive to overseas buyers.

What is the outlook for house prices in London for the rest of 2025?
Rightmove has lowered its forecast for 2025 house price growth to around 2 % Given the high level of supply and modest demand growth, prices are likely to remain flat or experience minor increases.

How does Dubai’s off‑plan market compare to London’s?
Dubai’s off‑plan market remains one of the most active in the world, offering lower entry prices, attractive payment plans and strong investor demand. For GCC buyers, it presents an alternative investment landscape with high potential returns.