---
title: London Prices Fall 2.2% as Buyers Win 10% Discounts and the £2m Surcharge Gets Its Bands
description: London prices are down 2.2% in a year and prime buyers win 10% discounts. What the £2m council tax surcharge bands mean for your London home.
author: Dr Marina Nani (Editor-in-Chief)
date: 2026-10-28T23:23:33.016Z
updated: 2026-10-28T23:23:33.030Z
canonical: https://www.sovereignmagazine.com/article/london-house-prices-2026-falling-2m-surcharge
image: https://cdn.nanimediahouse.com/pexels-30683472.webp
categories: Real Estate
content_type: Analysis
region: United Kingdom
publication: Sovereign Magazine
access: members
about:
  - type: Place
    name: London
    description: London is the capital and largest city of the United Kingdom and the country's most expensive housing market.
    sameAs:
      - https://en.wikipedia.org/wiki/London
---

London is the only part of the UK where house prices are falling. The average London home cost £554,430 in August, 2.2% less than a year earlier, according to the official UK House Price Index. Over the same year, prices rose 3.2% in the North East, 3.1% in Wales and 2.9% in Scotland. Healey's Budget has now added a firm timetable for the council tax surcharge on homes worth £2m or more, most of which stand in London.

## Flats are falling fastest while houses still edge up

The fall is not even. London flats are down 5% on the year, while London houses rose over the same period. If you own a flat, especially a newer one in a large block, you are carrying most of the capital's price correction. If you own a family house, your value has held.

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