Date Published 26 January 2026
Despite a tumultuous political-economic year in 2025, sales agreed have remained resilient, and demand continues to be strong. This indicates a good level of underlying demand activity as we move toward the traditional spring peak in March; particularly for homes in areas like Dulwich where family‑house demand remains consistently robust.
Towards the end of 2025 the wider London property market continued to soften, with around 15% of homes in London reportedly selling below their original purchase price (Bloomberg 2026). While equivalent figures for South‑East London are not isolated in that dataset, local indicators point in the same direction. The gap between asking prices and achieved sale prices has widened to –2.9%, compared with –1% in 2024 (H&W data), signalling increased price sensitivity and a cautious buyer pool. This aligns with ONS data showing annual HPI growth slowing to 1.7% at the end last year, a notable drop from the 5.6% peak in 2025, and reflective of a market adjusting to affordability pressures and shifting sentiment.
In the final quarter of last year, the uncertainty ahead of the Budget created a clear pause in buyer and seller commitment, with many delaying exchange until after fiscal announcements. This hesitancy has extended conveyancing timelines for sales agreed in September, pushing exchange and completions into the Christmas period and the early part of this year.
With two upcoming Bank of England base‑rate decisions on the horizon—and the possibility of at least one reduction—the sales market has made a positive start to 2026. Although inflation rose to 3.4% in December 2025 (ONS data), any easing in borrowing costs would help re‑establish buyer confidence and support greater stability in property prices across London and the wider UK.
Strong tenant demand and the upcoming Renters' Rights Bill mean 2026 is likely to be a defining year for landlords, with meaningful implications for both sales and lettings.
Taken together, these factors point to a market that is recalibrating rather than retreating. Dulwich continues to demonstrate resilience, supported by strong buyer demand, limited high‑quality stock, and a lettings sector that remains exceptionally active but is about to undergo change. While economic and legislative changes will shape the year ahead, the fundamentals of the area remain solid. As 2026 unfolds, realistic pricing, good preparation, and an informed approach will be key for both sellers and landlords looking to make the most of a market that is evolving but still full of opportunity.
Caroline Martin, Associate Partner
