What the Latest Figures Mean for Finchley Homeowners
The most recent data from the Office for National Statistics paints a picture of a capital city pulling in two directions — and understanding where Finchley sits within that picture matters more than the headline figures alone.
According to ONS data based on Land Registry transactions, London property prices fell by 3.3 per cent in the twelve months to February, the equivalent of £18,768 wiped from the value of an average home across the capital. In inner London — covering the City and thirteen boroughs including Camden, Islington, Kensington and Chelsea, and Southwark — the decline was steeper still: a 5.6 per cent fall, representing nearly £37,000 off the average home, which now sits at £622,821.
Finchley, as part of the outer borough of Barnet, occupies a different position in this story. But that doesn't mean local owners are insulated from the pressures reshaping the wider market — particularly if they own a flat.
The flat problem
The most significant drag on London values is the performance of flats, which make up a higher share of the capital's housing stock than almost anywhere else in England. The average flat in London has fallen 6.1 per cent year-on-year, dropping from £448,000 to £421,000 — a decline of £27,000 in a single year.
By contrast, terraced and semi-detached houses in London have broadly held their value, with falls of just 1 per cent and 0.6 per cent respectively. The divergence between property types is not incidental — it reflects structural issues that have been building for some time.
A significant number of London flats were purchased under the Help to Buy scheme between 2013 and 2021. That scheme enabled first-time buyers to purchase new-build homes with a 5 per cent deposit, supported by a government equity loan of up to 40 per cent, interest-free for the first five years. More than 375,000 people used it, the vast majority to buy new-build flats.
Those early buyers are now selling into a market where Help to Buy no longer exists, mortgage rates are meaningfully higher, and purchasers are scrutinising the ongoing costs of flat ownership far more carefully.
Chief among those costs are service charges. According to The Property Institute, service charges rose by an average of 41 per cent between 2019 and 2024, leaving the average leaseholder paying £3,634 per year. Combined with the broader reputational damage leasehold tenure has suffered in recent years, it is little surprise that buyer appetite for flats has softened.
The story differs across England
It is worth noting that London's difficulties are not reflected across the whole of the UK. In Yorkshire and the Humber, the average home is now selling for £209,000 — up 3.9 per cent on the year. The north west and north east have also seen values rise, by 3.4 and 3.6 per cent respectively. Across the UK as a whole, prices are up 1.2 per cent, with the typical home fetching £268,000.
How we help you in 2026
The data asks something of sellers in Finchley right now: honesty. Buyers are better informed, more cautious, and increasingly unwilling to absorb costs they cannot control. In that environment, accurate pricing is not a concession — it is a strategy. Homes that are realistically valued are still selling. Those chasing last year's numbers are not.
For buyers, there is a more straightforward message. A market where sellers have adjusted their expectations is, historically, a reasonable place to be. Those who buy with a long time horizon have regularly found that periods of softness resolve themselves in their favour.
The market is not broken. It is recalibrating — and Finchley, with its strong fundamentals and enduring appeal, remains well placed for what comes next.
Whatever move you wish to make, David Harris & Co is here for you.
At David Harris & Co, we understand what makes Finchley unique. Whether you’re buying, selling, or renting, our local expertise ensures we can guide you to the best decisions for your needs. Ready to explore Finchley’s property market?
Contact David Harris & Co for expert advice and a stress-free experience. Call us on 0208 346 9122 to get started. Let’s make Finchley your next home.
