Is It a Good Time to Buy Property in London? Here’s the 2025 Reality

If you’ve been wondering whether now is a good time to buy in London, you’re not alone. Between interest rates, shifting prices, and endless headlines, it can feel impossible to figure out the “right” moment to make a move.Let’s break it down using real 2025 data — and more importantly, real local context.

1. What the Market Looks Like Right Now

The London & St. Thomas Association of REALTORS® (LSTAR) reports that the average home price in late 2025 is roughly $620K, down slightly from 2024 but stabilizing through the fall.A key detail:👉 Inventory is up about 20% year-over-year, which means buyers finally have choice again.

CREA’s national report echoes this: most Ontario markets, including London, have transitioned into balanced or mildly buyer-leaning territory — something we haven’t seen consistently in years.

This translates to conditions buyers have been craving:

• More listings

• Less competition

• Fewer bidding wars

• More time to make decisions

• More room to negotiate

2. What’s Happening With Interest Rates?

Rates grabbed all the headlines in 2024–2025.Five-year fixed rates currently sit around 5.4%–5.8%, depending on lender and product. That’s higher than the ultra-low pandemic era, but economists from RBC, TD, and BMO all predict gradual rate relief in late 2025 and throughout 2026.

This creates a rare window where:

• You buy at a softer price

• You avoid major bidding wars

• You refinance later when rates drop

In other words — the opposite of buying at the peak.

3. Why Buying Now Can Actually Be a Smart Move

✔ Prices Have Softened

London saw a small year-over-year dip, and prices have leveled out.Buying during a flattened market often beats waiting until appreciation returns.

✔ You Have Negotiating Power Again

Conditional offers are back.Inspections are back.Negotiations are back.

This is the healthiest the market has felt in years.

✔ Renting Isn't Getting Cheaper

CMHC reports 4–5% annual rent growth in London — meaning renting long-term is becoming more expensive than ownership for many residents.

✔ London Remains a Value Market

Compared to GTA-adjacent markets, London offers far better value per square foot, stronger rental returns, and steady population growth.That long-term stability acts as a buffer during softer periods.

4. When Might It Be Smart to Wait?

Waiting makes sense if:

• You need more time to build your down payment

• You’re unsure about job stability

• You plan to move again within 1–2 years

• You’re hoping to qualify for a better rate later

But even then — getting pre-approved now helps you understand your numbers and act quickly if the right home hits the market.

Bottom Line

Is it a good time to buy property in London?For many people, yes, absolutely — especially if you’re planning to stay in the home for 3+ years.We’re in a rare moment where prices are stable, inventory is healthy, and competition is reasonable. Combine that with future rate drops, and this window becomes even more attractive.

If you’re thinking about buying — whether soon or “sometime next year” — I’d love to walk you through what your budget can get you in today’s market.

Justin Skrypnyk

Real Estate Broker

519-639-5176

Sources:LSTAR Market Report (2025)CREA Housing Market OutlookOREA Market Pulse SurveyRBC Housing & Rate Forecast 2025