Foreign investors, particularly Nigerians, are navigating new financial pressures in London’s recovering property market, according to real estate experts.
After experiencing stagnation in recent years, the London property market has seen modest growth of about 2–3 percent over the past 12 months, signalling a return to stability—but also presenting fresh challenges for buyers.
Ugo Arinzeh, London-based realtor and founder of Onyx Property Team, noted that while the market is stabilizing, offshore investors must prepare for unique costs, market complexities, and strategic decisions that could significantly impact returns.
“As of the fourth quarter of 2025, the average London property sold for roughly £659,000,” Arinzeh explained. “This reflects a 2.3 percent price increase over the past year, marking a notable improvement from previous stagnation.”
Rental prices also continue to rise. The average monthly rent in London reached approximately £2,227 at the end of 2025, compared with the UK national average of £1,375. Office for National Statistics data shows that private rents across the UK increased by 6.7 percent in the 12 months to June 2025, with London rents rising by 7.3 percent to an average of £2,252 per month.
However, data from Zoopla indicates slower growth for newly-let properties in London, at just 2.8 percent in the year to April 2025. In the prime and upper-end markets, rental growth stood at 1.6 percent in Q1 2025, demonstrating significant variation across price segments.
For Nigerian and other offshore investors, these trends suggest that build-to-let properties currently offer some of the best potential for yield. Understanding the nuances of price growth, rental performance, and property location will be crucial for making profitable investment decisions in the London real estate market.
