how a backdrop of rising prices and falling interest rates play against Investec gures showing E14’s prime position
by Jon Massey
Punchy figures for the UK property market were released last month, with Halifax’s House Price Index revealing the average price for a home had exceeded £300,000 for the first time. Overall, the national picture was one of tentative growth with a 1% year-on-year rise in property values and a confident forecast of between 1% and 3% growth over the next 12 months.
While the story in the capital is less positive – average property prices had declined from their peak at £581,320 in 2022 to £546,215 by October last year –there are indications that things in London could also be changing.
By November – the latest data available from the agency – that average figure had already increased by more than £8,000, perhaps reflecting greater demand among buyers who’ve spotted a good time to invest.
Interest rates have also been on a downward trend since August 2024, with the latest cut from the Bank Of England to 3.75% coming in December. While the drop from a high of 5.75% has been slower than the rapid rises of 2021 to 2023, economists expect more reductions, making borrowing more affordable.
At the time of writing, lenders such as Lloyds, Halifax and the Yorkshire Building Society were already offering rates of 3.66% or below on two-year fixed deals. With average wages steadily increasing in the background, cheaper loans and more affordable prices, the ingredients are present for greater activity in the housing market.
Less new-build development due to a number of factors in recent years indicates this could benefit owners of existing properties, providing a fillip to the resale market.
Canary Wharf itself is enjoying a bit of a purple patch, it would seem, with international financial services provider Investec Bank recently announcing that the area has “joined the premier league of postcodes”.
The company said the number of homes listed at more than £1million in E14 had increased in 2025 compared with the previous year, while the cost of space had risen from £1,087 per sq ft in 2024 to £1,156, indicating stronger
£1,156
Average price per sq ft of prime property in E14 according to Investec’s gures for 2025
Investec has named E14 among its list of prime London postcodes with an increasing number of properties listed for sale at £1million or more
Buyers don’t necessarily need to change where they live in the capital to nd better value
Carlos Mendes, Investec
demand relative to supply. Across the postcode, the average asking price of properties listed above £1million was £1.33million, with Investec noting a typical discount of 11.1% over the past year.
The Canary Wharf area joins the likes of Kensington, Knightsbridge, Chelsea, St John’s Wood, Hampstead, Bayswater and Fulham on Investec’s list.
“Investec’s research shows that London’s prime market is increasingly defined by postcode-level differences,” said Carlos Mendes, private banker at Investec.
“Buyers don’t necessarily need to change where they live in the capital to find better value. By comparing neighbouring postcodes, it’s often possible to secure more space, benefit from wider discounts and gain greater certainty on timing, while remaining close to work and day-to-day life.”
RICS chief economist, Simon Rubinsohn, added: “The latest Investec Property Index shows a sharp rise in listing in the Home Counties which aligns with RICS’ data pointing to an increase in the amount of stock on agents’ books.
“Against this backdrop, it is unsurprising that both reports suggest that the balance of power has shifted in favour of buyers providing greater scope for discounts to be secured off list prices.
“However, it is likely that with budget out of the way, and the measures announced less penal than feared, the prime market could begin to settle down with sentiment gradually improving through the course of 2026.”
Go to investec.com for more information
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