The London property market in figures
Across London, the UK House Price Index for July 2026 put the average at £550,037, 3.3% lower than a year earlier, and GOV.UK described it as the eleventh consecutive month of London average prices falling. Borough figures pull in different directions: Barking and Dagenham was up 5.3% and Kingston upon Thames up 3.3%, while the City of Westminster was down 20.7% and Tower Hamlets down 14.4%. Kensington and Chelsea remained the most expensive borough at £1.2 million, and Barking and Dagenham the cheapest at £376,000.
By buyer type, first-time buyers paid an average of £466,851 (down 4.0% on the year), former owner-occupiers £693,923, cash buyers £585,219 and mortgage buyers £542,867. Sales are thinner too: 4,006 London sales were recorded for May 2026, against 5,139 in May 2025. New-build homes averaged £509,334 in May 2026 and existing homes £549,723.
What the figures mean for a bridge in London
With values moving in opposite directions from borough to borough, lenders look hard at the comparable sales for the exact street, and a cautious valuation can cut the loan. Before you commit, have your own comparables ready, and use the bridging loan cost calculator to see what the interest and fees add up to over your term.
What tax adds to a London purchase
Stamp Duty Land Tax is often the biggest cost after the deposit. A home at the £550,037 average would cost about £45,004 in Stamp Duty Land Tax, for an individual buying an additional home, using the current bands plus the 5% higher-rates surcharge. Your solicitor confirms the exact figure.
The local plan and planning authority
Strategic planning for the capital sits with the Mayor through the London Plan, which was formally published and adopted on 2 March 2021. Planning applications themselves are made to the local planning authority for the site, which for most of London is one of the 32 boroughs or the City of London Corporation, and each has its own local plan alongside the London Plan.
Lenders that lend in London
For London, our panel has 49 lenders that offer first charge bridging. The full list is below the questions, with links to our reviews. Before approaching a lender we confirm it will lend on that address and that type of property.
Bridging loans in London: questions
What is the average house price in London?
£550,037 in July 2026, down 3.3% on a year earlier (UK House Price Index, London region).
How many lenders do bridging loans in London?
49 on our panel offer first charge bridging that covers London.
How much Stamp Duty Land Tax would an investor pay in London?
About £45,004 on a £550,037 purchase for an individual buying an additional home (October 2026 rates).
Is a bridging loan in London regulated?
Only if you or a close family member live, or will live, in the property. Bridges on London investment, company or commercial property are usually unregulated.
