With rising interest rates, a cooling market, and shifting buyer priorities, one agent shares what prospective buyers should consider before making a move in the UK capital.

Amid fluctuating property prices and mounting questions over value for money, one question is dominating the minds of many prospective buyers: is it still worth buying a flat in London? According to Rachel Morgan, a leading buying agent with over a decade of experience in the capital’s prime and emerging markets, the answer depends on timing, expectations, and flexibility.

“I’m being asked this daily,” says Morgan, who works with international investors, first-time buyers, and families looking to relocate. “There’s no universal answer, but for those who are strategic and long-term in their thinking, London still holds considerable appeal.”

The city’s housing market, once red-hot, has cooled considerably since late 2023. Interest rates have remained stubbornly high, and the Bank of England’s cautious approach has made mortgages less accessible. Average flat prices in central zones have declined by roughly 6% year-on-year, with outer boroughs seeing even sharper corrections in some areas.

Yet, for Morgan, this presents an opportunity. “Buyers with available capital or financing who aren’t relying on ultra-low rates now have more negotiating power,” she notes. “We’re seeing sellers become more flexible, particularly in areas that were previously overheated.”

Post-pandemic shifts have also redefined what buyers are looking for. Remote work has made space and access to green areas more attractive than proximity to offices. Consequently, districts such as Walthamstow, Battersea, and Crystal Palace are drawing attention away from Knightsbridge or Mayfair, offering more square footage at a fraction of the cost.

Another key consideration is rental yield. While prices have dipped, rental demand remains exceptionally strong. “Many landlords exited the market in recent years due to tax changes and regulatory pressure,” Morgan explains. “That’s created a supply crunch, pushing rents up. So, if you’re buying to let, the returns can still be very attractive.”

However, buyers must be prepared for additional costs. Service charges, ground rents, and building maintenance fees are increasingly burdensome, especially in newer developments. Leasehold complexities continue to frustrate buyers unfamiliar with the UK’s legal property framework.

For international buyers, currency fluctuations also play a role. With the pound relatively weak against the dollar and euro, overseas investors are cautiously eyeing re-entry, especially those from the Middle East and Southeast Asia.

Morgan’s final advice? “Don’t expect fast gains like in the past decade. But if you’re buying a flat in London as a long-term asset, with a view toward quality of life or rental potential, now could actually be a good time to move—especially if others are holding back.”

In a city long known for its resilient property market, the question isn’t just whether it’s worth buying a flat—but whether you’re buying with your eyes open. For some, this lull might just be the window of opportunity they’ve been waiting for.