London Property Investment Analysis
This article presents the change in average residential property prices from past to present, based on official data from the Land Registry, for investors wishing to purchase property in London. The data shows price increases between 1990 and 2025 and the effects of the 2008–2009 mortgage crisis.
1990–2025 Price Trends
London property prices, which averaged £85,547 in 1990, reached £561,587 by 2025. The rates of increase during this period were:
- 1990–2000: 63.20%
- 2000–2010: 114.50%
- 2010–2020: 70.15%
- 2020–2025: 10.22%
These figures demonstrate that London has strong appreciation potential for long-term investment.
Impact of the 2008–2009 Mortgage Crisis
The global mortgage crisis began in February 2007, peaked in September 2008 with the collapse of Lehman Brothers, and ended in June 2009. In London, the impact of this crisis began to be felt after January 2008 and ended in April 2009. During this period, London property prices fell by only 17%.
The reasons for this limited decline:
- Low housing supply
- High rental demand
- Limited building permits due to green space and historic building conservation policies
- Global Comparison
During the mortgage crisis:
- London: 17% decline
- USA: 32% decline
- Dubai: Up to 50% decline
London’s resilience reinforces its status as a safe haven for investors.
Conclusion:
When investing in property in London:
- Past price trends
- Resilience during periods of crisis
- Limited supply and high demand
should be taken into account. These dynamics indicate that London will continue to be a stable and secure investment region in the long term.