2025 has become a year of green shoots. With inflation coming under control, the Bank of England began to cautiously lower interest rates, and with that more buyers felt confident in searching for property and mortgages.
Of course, the London market has always behaved differently from the rest of the country, and values stay high as property remains highly sought. South London specifically continues to attract interest, bring full of vibrant communities that suit diverse buyers and renters — young professionals, families, first time buyers, and retirees.
Here is your round-up of South London property, and a look ahead to 2026.
2025 property in review
2025 saw steady, if modest, drops in interest rates.
|
Month (2025) |
Bank of England Headline rate (%) |
|
January |
4.75 |
|
February |
4.5 |
|
May |
4.25 |
|
August |
4 |
The decrease in the cost of borrowing meant a lot more prospective buyers felt able to search in earnest for property, and mortgage applications climbed 23% year-on-year in September.
In rental news, the Renters’ Rights Bill received royal asset in October. Its provisions start to come into force in May 2026. There is no doubt that the measures will empower tenants, and decrease the amount of control that landlords have over their property.
In practice, there should not be too much cause for concern in the majority of tenants and tenancies that are unproblematic. If there is one piece of advice for landlords, it is to ensure that all documentation is correct and thorough. The bill enables tenants to challenge things like possession or eviction, and should you wish to enforce any changes, the burden will be on you to prove their legitimacy.
For an overview of what the bill means for landlords, read more detail in our landlords’ guide.
South London property highlights
South London is the destination of choice for buyers and renters from all kinds of backgrounds. Access to Central London is perfect for commuters. Families can enjoy a cosmopolitan neighbourhood with that bit more space than deeper in the city. Those who have left working life behind can enjoy the vibrance of London with an eclectic local offering.
No surprise, then, that neighbourhoods like Herne Hill, Brixton, and Denmark Hill have seen so much interest and activity this year. At Urban Village, we have seen a consistent and growing demand for properties to rent and buy in those neighbourhoods, and have been delighted to help many people find their dream South London home in 2025.
Looking to sell your South London property in 2026, or simply curious what your property is worth in the sale or rental market? Ask for your free valuation, and one of our property experts will be in touch.
What to watch in 2026
The November 2025 Budget delivered the news that landlords will be facing a 2% increase in their property income from April 2027. There is a good chance that more properties will hit the market between now and then, as more landlords decide to sell rather than absorb the cost of more tax rises.
The so-called ‘Mansion Tax’ will hit in 2028. Properties in council tax bands F, G and H will be reassessed, and those worth £2million or more will face a £2,500 annual surcharge.
There will likely be a decrease in demand for properties worth over £2m, along with a greater number of property listings as owner-residents of the ‘mansions’ choose to downsize rather than face council tax hikes.
Looking ahead to 2026, and want to make sense of the market and plan your next move? Get in touch, and a member of the Urban Village team will be in contact to offer some expert property advice, with no obligation.