Current Status: The Bank of England cut the base rate to 3.75% on 18 December 2025. The latest UK House Price Index (Oct 2025) puts the average UK home at £270,000 with annual growth of 1.7%. London remains a two-speed market (many boroughs down YoY, several affordable boroughs firmer), meaning buyers have more leverage, but only if they buy the right product in the right micro-market.

The question isn’t just is 2026 good?, it’s this: Should I buy a house in London now, or wait until 2027?

Here’s London Construction Magazine’s evidence-led answer: most buyers shouldn’t wait for 2027 as a strategy. Not because prices can’t move further, but because the real outcome is driven by what you can control: your affordability, your time horizon and the risk profile of the specific property you’re buying.

London in 2026 is not a market where you win by rushing. It’s a market where you win by underwriting properly and using a slower market to negotiate from a position of strength.

Waiting for 2027 sounds logical — but it’s usually the wrong lever

Buyers often say: I’ll wait until 2027 because rates will be lower and prices might drop more. The problem is that you’re outsourcing your decision to two variables you cannot schedule: the base-rate path and London price discovery by borough.

Even if rates drift lower into 2026–2027, the benefit can be partially absorbed by:

• Price rebound in good stock: the best homes (scarcity houses, compliant flats, transport-led locations) often stabilise first.
• Competition returning: when affordability improves, demand returns and your leverage can shrink quickly.
• Life friction: rent, family needs, schooling, commute changes — the real costs don’t pause while you wait.

So the better question is: Do I have enough leverage and enough safety margin to buy well now?

The London reality: 2026–2027 will be split by product, not headlines

London is not one market. Current reporting shows prices falling in a significant portion of boroughs while others remain firmer, classic two-speed behaviour. That split is not random: it maps onto deliverability, running-cost risk and liquidity.

House-led micro-markets (family houses with real scarcity) can hold value even in slow cycles. Flat-heavy micro-markets are more exposed to service-charge anxiety, building-safety scrutiny and investor withdrawal, which can push discounts deeper.

This is why LCM’s main piece matters: prices are not just falling because demand is weak, they are falling because the market is repricing certainty and risk in the delivery system.

Related (core context): Why London house prices are falling and what the delivery system is signalling for 2026

When buying now is rational (even if prices drift lower)

Buying now is rational when the fundamentals work and you can keep a safety buffer. Use this filter:

• Time horizon: you plan to stay 5–7 years+ (ideally longer). Short horizons make timing risk more painful.
• Affordability stress-test: you can still pay the mortgage if rates moved the wrong way temporarily.
• Deposit + buffer: you keep cash after completion (not just deposit to zero). Aim for a real emergency fund.
• Negotiation leverage: you are buying at a discount to asking (or extracting value via condition, fixtures, timing, chain control).
• Risk clarity: for flats, you have a clean line of sight on building safety documentation and service-charge trajectory.

In simple terms: if you can buy a good asset, at a rational price, with safety margin — you don’t need 2027.

When waiting until 2027 may actually be smarter

Waiting can be the correct move when the risks are personal, not market-based. It’s smarter to wait if any of these are true:

• Your job / income is unstable or you might relocate.
• You have no cash buffer after purchase and would be exposed to any shock (repairs, rate resets, life events).
• You’re buying a high-risk flat (unclear cladding/remediation status, large service charge volatility, weak documentation).
• You’re stretching based on the assumption rates will fall so it’ll be fine.

Waiting for 2027 should be a personal finance decision, not a market-timing gamble.

The LCM playbook: how to buy well in 2026

If you are buying in 2026, treat it like a disciplined procurement:

• Target the split: seek good stock in underperforming micro-markets where sellers must transact.
• Measure running-cost risk: especially for flats — service charge, sinking fund, insurance, planned works.
• Use the calm market: negotiate on evidence (comparables, condition, lease terms, compliance status).
• Prioritise liquidity: transport, schools, layout flexibility and resale appeal matter more in slow cycles.

Related LCM context: Beyond the 3.75% Interest Rate: Why 2026 is London’s Strategic Reset  |  Stamp Duty Madness: Government Solves Housing Crisis by Making Moving Harder  |  What Today’s ONS Q3 Revisions Mean for London Contractors in 2026

Key takeaway

If you’re financially stable and buying for the medium-to-long term, 2026 is likely to be a better buying environment than the last few years because leverage is returning. Waiting for 2027 only makes sense when your personal risk profile needs it — not because you think you can schedule the market.

In 2026, the winning move is simple: buy a liquid asset, at a rational price, with safety margin and don’t outsource your life to a forecast.

Expert Verification & Authorship: Mihai Chelmus Founder, London Construction Magazine | Construction Testing & Investigation Specialist