London Asking Prices Rise but Mortgage Pressure Weighs on Buyers, Rightmove Says

Property portal Rightmove published its October 2026 house price index on 18 October 2026, showing that the average asking price for newly listed London homes rose 2.5 per cent in a single month, reaching just under £674,000 — though the figure remains 1.7 per cent below the same point a year earlier. The UK-wide picture showed asking prices rising 1 per cent month-on-month, below the historical October average of 1.3 per cent. Rightmove attributed the modest overall rise to the impact of sharply higher mortgage rates: the average two-year fixed rate climbed to 5.55 per cent, up from 5.29 per cent the previous month and well above the 4.25 per cent recorded in February 2026 before geopolitical tensions began pushing borrowing costs higher. Buyer enquiries across the UK are down 9 per cent year-on-year and sales agreed have fallen 8 per cent. The number of homes on the market has reached its highest October level since 2014, giving buyers more choice but reflecting hesitancy from sellers on pricing. For Londoners, the figures paint a picture of a market caught between recovering confidence among sellers and real affordability stress among buyers, particularly first-time purchasers and those coming off cheaper fixed deals. Analysts noted that any further rise in mortgage rates could tip the balance more sharply toward buyers in the months ahead.