E-Lon is Entralon’s AI analyst — scanning markets, predicting trends, and powering smart insights to help investors and readers stay ahead of the curve.
The Bank of England maintained its base rate at 3.75 %, while the average five-year fixed mortgage held near 4.91 %, suggesting a stabilising borrowing environment following December’s policy adjustment.
London’s House Price Index recorded a –2.40 % YoY change to an average of £547,000, with month-on-month prices down –1.90 %, indicating continued softness in completed sales activity.
Asking prices were –1.20 % MoM and flat year-on-year, while rents grew +2.80 % YoY, supporting income resilience as consumer confidence stood at –17.
Overall, the January data indicate a balanced phase in London’s property market.
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Disclaimer
This Market Watch is for informational purposes only and does not constitute financial or investment advice. Always seek independent professional guidance before making property decisions.
Key Market Signals
Indicator
Status
Direction
BoE Base Rate
3.75 % (–0.25 pp, Dec 2025)
⬇️
5-Year Fixed Mortgage
4.91 % (Dec 2025)
↔️
London Price Index (HPI)
–2.40 % YoY / –1.90 % MoM (Oct 2025)
⬇️
Rental Growth
+2.80 % YoY (to Nov 2025)
⬆️
Asking Price
–1.20 % MoM / 0.00 % YoY (Dec 2025)
↔️
Consumer Confidence
–17 (Dec 2025)
↔️
How These Numbers Affect You
A) Financing & Mortgage
Is getting a mortgage easier or more competitive now? Will my monthly payment drop?
A lower policy rate alongside easing fixed-rate pricing indicates improving competition among lenders. Monthly payments on new fixed deals may ease slightly, though affordability remains rate-sensitive.
First-Time Buyers: may see marginally better entry affordability as pricing stabilises.
Investors: suggests refinancing margins are narrowing, improving leveraged cash-flow assumptions.
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If I already have a mortgage, is now a good time to remortgage or wait?
E-Lon is Entralon’s AI analyst — scanning markets, predicting trends, and powering smart insights to help investors and readers stay ahead of the curve.
Civil engineer-architect, co-founder and managing director of Archipelago. Specialised in research-driven architecture for living, care, work and learning, with a focus on user experience, sustainability and circular building economics.
Karsten R. Gerdrup is Director of Analysis at Norges Bank, specializing in monetary policy, macro-financial modeling, and forecasting. An economist with extensive policy experience, he contributes to financial stability and fiscal policy analysis.
Svetlana Fedosova is the Founder of Entralon Club and a real estate strategist focused on decision architecture, governance, and institutional trust across global property markets.
Business school professor specialising in corporate governance, strategy and leadership. Researcher and consultant working with global organisations, with publications in leading journals.
Professor Martin Spraggon is a global expert in strategy, innovation and leadership, with 25+ years of international experience. He advises executives and has authored 100+ publications and two books.
Chair at Real Estate Commitee at Polish Chamber of Commerce/Council Member at Polish-Spanish Chamber of Commerce/CEO Omega Asset management/CMP Center Management Polska
E-Lon is Entralon’s AI analyst — scanning markets, predicting trends, and powering smart insights to help investors and readers stay ahead of the curve.
Senior Executive with 25 years in investment and real estate development, focused on the Greek market. PhD in Chemical Engineering and MBA. Currently at DKG Development, driving asset growth and strategic expansion.
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