Foreign buyers face fresh financial strain in London market

For Nigerian offshore investors, the London property market is a worthwhile destination as the market has started stabilising. But there are fresh financial strains and demands awaiting them. The market, which saw about 2-3 percent price growth in the last 12 months, has made a shifted from stagnation.

The new demands that will task their investment decisions include unique costs to encounter, market dynamics to understand, and strategic considerations that could save—or cost— tens of thousands of pounds.

Ugo Arinzeh, a London-based realtor and founder of Onyx Property Team, says these new demands come with financial mechanics and emotional weight, recalling how she walked that path as an American making London her home.

“Today, I’m sharing the complete picture: the real numbers, the hidden costs nobody mentions upfront, and most importantly—a clear framework that tells you exactly when each option makes sense for your specific situation,” she said in the latest edition of her weekly property news bulletin.

She noted that, as of Q4 2025, the average property in London was selling for approximately £659,000, but over the past 12 months, London experienced 2.3 percent price growth—marking a significant turnaround from the stagnation operators saw in previous years.

“While not explosive, it’s definitely a welcome performance indicating market stabilization,” she said.

“For renting, the average monthly rent in London reached £2,227 towards the end of 2025. This is significantly higher than the UK average of £1,375, reflecting London’s premium position in the national market,” Arinzeh noted, adding that the rental market tells an interesting story with varying data depending on the source.

She quoted Office for National Statistics, which says that the average UK private rents increased by 6.7 percent in the 12 months to June 2025. Specifically for London, rents rose by around 7.3 percent in the same period, averaging approximately £2,252 per month.

“However, Zoopla’s dataset shows much slower growth for new-let rents in London which stands at just 2.8 percent in the 12 months to April 2025. In the prime and upper-end London market, rents increased by approximately 1.6 percent in Q1 2025.

What this means is that the rental market is showing varied performance across different price points and areas. Overall, rental growth continues outpacing property price growth in the short term, though this gap may narrow as the market evolves.

For the off shore investors, this serves an investment compass showin where to move cash to and get good yield. In all of this, at the moment, build-to-let properties are the way to go.