London's average house prices decreased by 2.5% in the year to June 2026, with the average home costing £554,000, according to the Office for National Statistics (ONS). This overall figure masks a divide, as Inner London experienced nearly a 6% fall in prices to May, while Outer London remained largely flat.
However, some East London boroughs have bucked this trend. Barking and Dagenham recorded a 4.3% increase in average house prices over the year, reaching £371,000. This is more than £180,000 below the London average.
East London also continues to see strong rental demand. The average private rent in London was £2,317 a month in July 2026. In Newham, rents rose by 4.2% to an average of £1,928 in the year to June, which is almost double the London-wide growth rate at that time.
For buyers, East London offers more affordable entry points onto the property ladder. The average flat or maisonette in Barking and Dagenham is approximately £250,000. Areas like Ilford, Romford, and Canning Town also provide a balance of value and transport connectivity, including the Elizabeth line.
Significant investment in East London continues, with new cultural and employment hubs. The V&A East Museum opened in April 2026 at East Bank, and Eastbrook Studios in Dagenham is bringing major film and TV productions to the borough.
The Bank of England held the base rate at 3.75% in July. At the start of September 2026, the average two-year fixed mortgage rate was 5.52%, and five-year fixes averaged 5.64%, according to Moneyfacts.