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Regional report · 5 min read read · Updated July 2026

London & South East Property Market: Regional Analysis & County Comparison, End of H1 2026

10 counties, 140,661 transactions, median £395,072.

01

London & South East Property Market Overview

The London & South East region encompasses 10 counties, recording a combined 140,661 residential transactions over the past 12 months. The regional median property price stands at £395,072, with prices falling at -0.2% year-on-year.

London & South East median prices have moved from £423,891 in Q1 2025 to £403,823 in Q2 2026, a change of -4.7% over 5 quarters. London & South East has now recorded 3 consecutive quarters of price falls.

New-build activity across the region totalled 1,474 completions, demonstrating an active development pipeline.

02

County-by-County Comparison

The table below compares all 10 counties in the London & South East region, ranked by median property price. Click any county name for the full market report.

CountyMedian PriceSales (12m)YoY ChangeNew Builds
Surrey£492,50010,627+2.1%131
Greater London£485,00039,4130%412
Buckinghamshire£479,6254,372-0.3%136
Hertfordshire£450,0006,843+1.4%44
Berkshire£400,0007,722-1.4%97
Oxfordshire£390,1446,258-3%95
Sussex£360,00015,724-0.5%120
Kent£347,00018,488+0.1%168
Hampshire£346,50014,700-0.4%88
Essex£342,50016,5140%183

03

Price Geography

Property prices across London & South East vary significantly. Surrey commands the highest median price at £492,500, while Essex offers the most affordable entry at £342,500 — a spread of £150k.

This price differential creates opportunities across the risk-return spectrum. Premium locations offer higher GDVs but require larger capital commitments, while more affordable areas can deliver stronger percentage returns on lower absolute investment.

04

Development Hotspots

The most active development markets in London & South East, measured by new-build completions, are Greater London (412 new builds), Essex (183 new builds), Kent (168 new builds).

By total transaction volume — an indicator of market liquidity and exit confidence — Greater London (39,413 sales), Kent (18,488 sales), Essex (16,514 sales) lead the region.

Developers entering the London & South East market should weigh these two metrics together: new-build activity shows where planning consent is achievable, while transaction volume confirms buyer demand.

05

Finance Landscape

Development finance across London & South East varies by location and scheme size. In premium areas like Surrey, typical scheme GDVs support larger facilities, while more affordable counties may suit developers using bridging finance for refurbishment-led strategies.

Senior development finance is available from 6.5% p.a. at up to 65-70% LTGDV, with mezzanine finance stretching total borrowing to 85-90% of costs. For developers building across multiple sites in the region, portfolio-level facilities can offer better terms.

Construction Capital sources terms from 100+ lenders across the London & South East region. Submit your scheme through our deal room for indicative terms within 24 hours.

06

Key Takeaways

  • Market size: 140,661 transactions across 10 counties — one of the UK's most active regions.
  • Price range: £342,500 to £492,500 median prices, offering opportunities across the capital spectrum.
  • Market direction: 3 of 10 counties showing year-on-year price growth.
  • New build activity: 1,474 completions across the region, indicating a healthy development pipeline.
  • Finance availability: Full range of development finance, mezzanine, bridging, and exit products available across all London & South East counties.

Common questions

Frequently asked
questions.

What is the average house price in London & South East?

The median house price across London & South East is £395,072, based on 140,661 transactions over the past 12 months. Prices range from £342,500 in Essex to £492,500 in Surrey.

Which county in London & South East is best for property development?

This depends on your strategy. Greater London offers the highest transaction volumes (39,413 sales) for exit confidence. Greater London has the most new-build activity (412 completions). See the individual county reports for detailed analysis.

How are property prices trending in London & South East?

Prices across London & South East are falling at -0.2% year-on-year. 3 of 10 counties are seeing price growth.

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