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South-West London Leads Market with 12% Price Growth, Outpacing South-East

  //house-home.news-articles.net/content/2025/12/1 .. t-with-12-price-growth-outpacing-south-east.html
  Published in House and Home on Sunday, December 14th 2025 at 21:38 GMT by London Evening Standard
      Locale: England, UNITED KINGDOM

Rightmove’s latest market data confirms the South‑West remains the most coveted part of London, while the South‑East shows steady, but slower, growth

A new report from property portal Rightmove, highlighted in The Standard, has shed further light on the contrasting dynamics that currently define two of London’s most popular property markets – the South‑West and the South‑East. In an exclusive interview with Rightmove market analyst Matt Smith, the company’s latest statistics and insights reveal that the South‑West still out‑performs its eastern counterpart in both price growth and buyer demand, even as the South‑East is slowly catching up thanks to an expanding supply of more affordable homes.

The numbers that matter

Rightmove’s analysis of the past 12 months shows that average house prices in the South‑West have risen by 12 % – a year‑on‑year jump that remains above the overall London average. By comparison, the South‑East has seen an 8 % increase, still a solid gain but noticeably slower. When broken down by borough, the hot spots in the South‑West are Richmond, Wimbledon and Kingston – all three posted increases of 14–16 % – while the South‑East’s fastest‑growing areas are Croydon, Bexley and Bromley, where price growth sits at 9–10 %.

Smith points out that the “per‑square‑foot” value in the South‑West is still roughly 20 % higher than in the South‑East, a statistic that explains why the former continues to attract higher‑income buyers and investors. At the same time, the South‑East’s price trajectory has benefited from a sudden surge in the number of “new build” developments, many of which are priced below the London average, making them attractive to first‑time buyers and young professionals.

Why the South‑West stays hotter

According to Smith, the South‑West’s sustained appeal boils down to a combination of world‑class transport links (the Thameslink, the Overground, and the new Crossrail stations), excellent schools, and a high density of leisure and retail amenities. “When you’re looking at the price‑per‑square‑foot data, the South‑West still outperforms the rest of London by a comfortable margin,” Smith explains. “This means that despite the headline inflationary pressures, buyers are willing to pay a premium for the convenience and lifestyle the area offers.”

The interview also referenced Rightmove’s own proprietary predictive algorithms, which use machine‑learning models trained on millions of search queries and transaction data to forecast price trends. “Our model has identified a sustained upward trajectory for the South‑West until at least 2026,” Smith added, “with a projected average price rise of 3–4 % per year in the next three years.”

A slower but steady South‑East

While the South‑West remains the favourite, the South‑East is not lagging as dramatically as some might fear. The area’s relatively affordable price range, combined with the introduction of new rail links (including the upcoming extension of the Docklands Light Railway into Bexley), has spurred a modest increase in buyer interest. Smith cited Rightmove’s own “search‑volume” data: in the last quarter, the number of property searches for “South‑East London homes” grew by 12 %, a 6‑month high. This uptick, he says, is an early indicator that the market will continue to warm.

The article also linked to a separate Rightmove press release that announced a new data product – a “Market Insight Dashboard” – that provides real‑time price changes, inventory levels and demographic data for specific boroughs. The dashboard is set to roll out across all of London’s 32 boroughs by the end of the year, offering buyers and sellers a more granular view of market dynamics.

Mortgage rates and policy backdrop

A secondary link in the article pointed to a recent Standard Financial piece that discusses the Bank of England’s latest interest‑rate decisions. The Bank’s rates have been hovering at 4 % for the last six months, a relatively low environment that has encouraged borrowing. Smith noted that “the current rate environment is a key driver of the buying momentum we see in both the South‑West and South‑East,” especially among buyers who have been on the market for longer periods.

In addition, the Standard article referenced the local councils’ planning regulations. For instance, a link to the Royal Borough of Kingston’s planning portal highlighted recent approvals for new mixed‑use developments, which could push the South‑West’s price growth even higher in the next few years. Similarly, a link to the London Borough of Croydon’s website detailed its new “Affordable Housing Strategy” – a policy aimed at increasing the supply of affordable homes by 10 % over the next five years. This policy is expected to further stimulate demand in the South‑East.

Take‑away for buyers and sellers

• Buyers: If you’re looking for premium value and lifestyle convenience, the South‑West remains the best bet – expect to pay a premium, but also enjoy high quality amenities and excellent transport links. If affordability is a priority, the South‑East is catching up, especially with the growth in new build and the potential for price stabilization thanks to supportive local planning.

• Sellers: In the South‑West, price growth is steady and inventory remains tight, so you can expect a high return on investment. In the South‑East, the rise in supply and the increased buyer interest are creating a competitive environment; sellers should consider pricing strategies that reflect the local demand‑supply balance.

• Investors: The predictive model from Rightmove suggests a continued upward trend for the South‑West, with a potential 3–4 % annual price increase until 2026. The South‑East’s growth is slower, but the potential for value‑add exists, particularly in areas with new transport links and affordable housing plans.

Bottom line

Rightmove’s fresh data underscores a clear divergence: the South‑West remains the premium, high‑growth segment of London property, driven by lifestyle, transport and a high price‑per‑square‑foot premium. The South‑East, meanwhile, is on a steady, but more modest, growth trajectory, buoyed by affordability and infrastructure upgrades. For buyers, sellers, and investors, understanding these nuanced differences is key to making the most informed decisions in the ever‑evolving London property market.