London home sales dropped 10.3% in January 2026, lowest in three years, due to high rates and weather, though prices rose and inventory remained high.

London’s home sales in January 2026 fell to 341, the lowest in three years and a 10.3% drop from the same month in 2025, driven by high interest rates, economic uncertainty, and harsh winter weather. Despite the decline in sales, the average resale home price rose to $624,550, with significant regional variations. The market remains a buyer’s market with 6.6 months of inventory, the highest in a decade, giving buyers more leverage.