London Property Prices pick up in September – What Malaysian Buyers need to know

London’s property market showed fresh signs of movement in September 2026, with asking prices rising after several months of decline. For Malaysian buyers and investors considering a property purchase in the UK, the latest figures offer a useful picture of where the market stands. However, higher mortgage costs and a growing supply of homes are still worth keeping in mind.

According to Rightmove, asking prices for newly listed homes across the UK increased by 0.7% in September. London recorded a stronger rise of 1.8%, adding an average of £11,324 to asking prices compared with August. However, with more homes available than at any point in the past 12 years, buyers still have plenty of choice when weighing up their options.

London prices rise as more homes enter the market

The average asking price in London reached £657,775 in September, compared with £367,440 across the UK. Despite the monthly recovery, the high number of properties for sale means sellers are competing harder for buyers’ attention.
For Malaysian investors, this could create an opportunity to compare locations, negotiate with sellers and take time to assess a property’s rental prospects before making a decision. London remains an important market for international property ownership, but choosing the right area and purchase price matters just as much as the city’s global appeal.

Lambeth recorded the strongest monthly price growth among the London boroughs listed, with asking prices rising by 0.7% to £649,420. Harrow and Croydon followed with increases of 0.5%, taking average asking prices to £609,578 and £475,627 respectively. Bexley recorded a 0.4% rise, with prices reaching £485,547.

Mortgage costs remain a consideration

The recent price recovery comes against a challenging economic backdrop. The Bank of England held its base interest rate at 3.75%, while UK inflation rose to 3.1% in August. Rightmove’s average two-year fixed mortgage rate also increased from 5.09% to 5.29% in September.

Higher borrowing costs can affect affordability and the returns investors expect from a property. Before making a decision, Malaysian buyers should look at the bigger picture, from mortgage options and exchange rate changes to the costs of maintaining a property and the rent it could bring in.

The Autumn Budget on 28 October is also worth keeping an eye on. The government is expected to announce its proposed Your First Home scheme, which would allow eligible first-time buyers in England to purchase a property with a 2.5% deposit, alongside a government-backed equity loan. However, the scheme’s final terms will determine who qualifies, and it is not designed specifically for overseas investors.

Possible changes to Capital Gains Tax and the threshold for the proposed Mansion Tax are also being discussed ahead of the Budget. Any confirmed changes could influence the cost of owning or selling higher-value UK property.

London continues to attract international buyers

London remains a significant destination for overseas property ownership. Benham and Reeves’ latest research found that 39,172 of the 91,136 property titles held by overseas companies across England and Wales were registered in Greater London. Westminster and Kensington and Chelsea together account for more than 37% of London’s share.

In September, our Malaysia office also showcased Camden Goods Yard in Kuala Lumpur, allowing local buyers to explore a London property development.

For Malaysian investors considering the UK, the latest figures suggest a market with renewed price movement but plenty of choice. Rather than focusing on short-term price rises alone, it is worth assessing the location, purchase costs, rental demand and investment horizon together.

Benham and Reeves provides guidance on the London and UK property markets for international buyers. Get in touch with our professionals in the Malaysia office or one of our London branches to discuss the available properties and explore opportunities that match your investment plans.