The Bank of England maintained its base rate at 4.00%, while the average five-year fixed mortgage rate held near 5.02%, suggesting a steady borrowing environment as monetary policy remains on pause.

London’s House Price Index recorded a +0.7% YoY change to an average of £561,587, indicating price stability through mid-summer, though official transaction volumes remain pending.

Asking prices rose +1.5% MoM to £685,497, while annual rental growth reached +5.7%, keeping yields firm even as consumer confidence held at −19.

Overall, the data indicate a balanced phase in London’s property market, with affordability steady and sentiment cautiously stable.

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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

4.00 % (unchanged since Sep 2025 MPC)

↔️

5-Year Fixed Mortgage

5.02 % (+0.02 pp MoM)

↔️

London Price Index (HPI)

+0.70 % YoY (Jul 2025)

⬆️

Rental Growth

+5.70 % YoY (to Aug 2025)

⬆️

Asking Price

+1.50 % MoM / –1.40 % YoY (Oct 2025)

↔️

Consumer Confidence

–19 (Sep 2025, –2 pts MoM)

⬇️

How These Numbers Affect You

A) Financing & Mortgage

Is getting a mortgage easier or more competitive now? Will my monthly payment drop?

A steady base rate and marginally stable fixed-rate offers indicate that borrowing costs have plateaued after months of softening. Competition among lenders is slowly returning, improving credit availability for qualified buyers.

First-Time Buyers: may find affordability conditions improving as fixed-rate products stabilise.

Investors: signals steady leverage potential, enabling predictable financing for portfolio management.

If I already have a mortgage, is now a good time to remortgage or wait?