Below is a summary of long-term averages for London and Zone 1 / central areas in England. Sources: UK House Price Index, ONS, London Datastore and industry reports.
Property values (long-term average)
Over 20-year periods, London has seen total price growth in excess of 500%, implying an average annual rate of roughly 9–10%. Over the long term (20–30 years), London house prices are commonly cited as growing at around 5–7% per year on average, with some sub-periods showing 8–10%.
Official statistics for Zone 1 specifically are usually reported as "London" or "Inner London". Zone 1 tends to be more volatile than the London average; for prime central areas, a long-term average of 5–8% per year is often used.
Average annual growth (London / Zone 1): Approx. 5–8%
Rental prices (long-term average)
For Central London (Central / Prime), the long-term average over the last c. 15 years is around 2.5% per year. After the pandemic, rents rose sharply (e.g. 13%+ in 2022); growth has slowed somewhat in 2024–2025.
In Zone 1 / prime areas, rental growth has tended to be lower than house price growth over the long term; an average of 2–4% per year is commonly cited.
Average annual growth (London / Zone 1): Approx. 2–4%
Summary
London / Zone 1 long-term average (annual):
- Property value: Approx. 5–8%
- Rental price: Approx. 2–4%
As official series for Zone 1 are typically for "London" or "Inner London", the figures above are ranges rather than a single Zone 1 rate. Up-to-date data can be tracked via ONS, Land Registry and GLA (London Datastore).