London’s housing market is worst in England – analysis

A new analysis claims that London is England’s most challenging housing market for sellers.

Home buying company Spring has analysed almost 500,000 English property transactions, with the London recording the lowest sales conversion rate in the country and some of the highest levels of price reductions, fall-throughs and property withdrawals.

Its research covering the first three months of 2026 suggests that just 35.8% of London properties reached Sold Subject to Contract (SSTC), significantly below the national average of 52.8% and the lowest rate of any English region.

The research also found that 30% of London listings required at least one asking price reduction before finding a buyer, highlighting the extent to which affordability pressures and buyer caution are forcing sellers to adjust expectations.

Despite commanding the highest median asking price in England at £550,000, London’s housing market is showing signs of increasing strain.

Alongside its low SSTC rate, the capital recorded 44.1% of homes being withdrawn from the market without securing a sale.

The report also highlights a stark divide between outer and central London.

While some suburban locations are reaching sale agreed status in less than two months, sellers in prime central postcodes are facing much longer waits.

Properties in W1S (Mayfair/St James’s) took an average of 207 days to reach SSTC and SW1W (Belgravia) averaged 160 days. This is compared to 58 days in DA5 (Bexley) and RM8 (Dagenham).

Shane Miller-Bourke, co-chief executive of Spring, says:

“The challenge in London isn’t simply how long it takes to sell a home, but whether a transaction gets over the line at all.

“There are signs that some parts of the market are still adjusting to a new reality. Higher mortgage costs and stretched affordability mean buyers are much more price-conscious than they were just a few years ago.

“As a result, success is increasingly determined by pricing realism rather than pricing ambition, which helps explain why almost one in three London homes requires a price reduction before finding a buyer.

“It is also important to remember that these figures measure the point at which a property reaches Sold Subject to Contract, rather than legal completion.”

Kindly shared by EstateAgentTODAY  image courtesy of Adobe