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London’s housing market is facing mounting structural pressure as thousands of newly built flats remain unsold and unoccupied across the capital. More than 3,500 completed units are currently sitting empty, particularly in boroughs that saw heavy investor-led development during the low-interest-rate period. At the same time, average flat prices in London have declined over the past year, with larger drops recorded in parts of Prime Central London and investor-focused districts. Rising interest rates, weaker buyer demand, and the withdrawal of international investors have significantly reduced transaction volumes, leaving developers with growing inventories and stalled projects. This slowdown is having wider consequences for London’s construction sector and housing pipeline. Insolvencies among construction firms have increased, new project launches have fallen sharply, and housing starts are now well below official targets. While affordability remains a major challenge for residents, high build costs and regulatory delays have limited developers’ ability to lower prices without incurring losses. Local authorities are simultaneously facing record homelessness costs, highlighting a growing disconnect between housing supply, market pricing, and household incomes. Together, these trends point to a housing system struggling to adapt after years of reliance on speculative demand rather than end-user affordability. London housing market, empty flats London, London property prices, UK new build housing, London real estate analysis, unsold apartments London, construction insolvencies UK, London housing supply crisis, London affordability issues, UK housing market 2025, London development slowdown, homelessness London statistics Disclaimer: We’re passionate about real estate, but we’re not licensed agents, appraisers, or financial advisors. The information shared here is based on public data, market trends, and personal opinions—purely for entertainment and general knowledge. We don’t guarantee accuracy or completeness. Always consult a licensed real estate professional, attorney, or financial advisor before making any property, investment, or relocation decisions. Mayor of London BREAKSDOWN as 2,500 Empty Flats COLLAPSE Real Estate Market! #ukhousingmarket #ukpropertymarket #LondonHousingCrisis