The Southwark property market remains one of London’s most dynamic and diverse, offering everything from riverside apartments in Bankside and Borough to period conversions around Camberwell and Peckham. In 2025, the area continues to attract first-time buyers, professionals and long-term investors seeking solid returns in SE1 and SE5.
📊 Market Overview
Average prices across Southwark currently sit near £575,000, with flats averaging £470,000 and family homes exceeding £750,000 in the most desirable pockets. The market has cooled slightly after sharp growth in 2022–23, creating new opportunities for well-prepared buyers.
Mortgage availability has improved, with lenders reopening higher-LTV products and showing renewed confidence in buyers purchasing within central and inner-London postcodes.
🏘️ Most In-Demand Areas in SE1 & SE5
- Peckham & Nunhead: Strong community feel and competitive pricing make these hotspots for first-time buyers.
- Camberwell & Denmark Hill: Period housing, proximity to King’s College Hospital and excellent transport links appeal to professionals.
- Elephant & Castle & Walworth: Rapidly modernising, with diverse housing stock and good long-term value.
- Borough & Bankside: Premium riverside apartments continue to command steady demand among owner-occupiers and investors.
💷 Mortgage Environment in 2025
Typical two-year fixed rates range from 4.6 % – 5.1 %, while five-year products remain near 4.8 %. Local buyers often use joint applications or family-assisted mortgages to improve affordability given London’s higher property values.
Self-employed professionals and contractors in Southwark are also benefitting from more flexible income assessment, particularly from smaller building societies and specialist lenders.
🏠 Rental & Investor Insights
Rents have risen around 7 % year-on-year, driven by demand from medical staff, students, and creative professionals. Average yields remain between 4 % and 5 %, with high demand near major transport routes such as the Jubilee and Northern Lines.
💡 Tips for Southwark Buyers
- Get an Agreement in Principle before viewing — competition remains strong for well-priced flats.
- Check lease length & service charges carefully, particularly in ex-local authority blocks.
- Consider cross-rail and Overground accessibility when assessing long-term value.
- Use a local conveyancer familiar with Southwark leasehold documentation — it can save weeks.
🌍 Outlook for 2025
Experts forecast steady prices with 2–3 % growth through late 2025 as lending stabilises and supply remains tight. Buyers who secure finance early and act decisively are best positioned to benefit from the calmer market conditions.
📞 Next Steps
Considering a move in Southwark? We can outline current affordability, local mortgage criteria and the latest trends for SE1, SE5 & SE17. Send an enquiry to find out more.