London house prices rally while rents drop

The increase in working from home that appears to have led buyers to put less emphasis on location and more on space has not undermined London house prices. As of September, house price growth in the capital of 4.1% y/y was only marginally below that in England and Wales, of 4.7% y/y. And while prices in Camden and Tower Hamlets have dropped, there was no general trend of weaker price growth in central boroughs. However, the rental market has suffered from a plunge in tenant demand that has led to a drop in rents.