London’s housing market has seen its fair share of ups and downs over the past year. Yesterday’s report from the ONS has shed light on how the capital’s property prices have fared, revealing a mixed bag of results across different boroughs. On average, house prices in London have taken a dip, declining by nearly 5% year-on-year.
The end of 2023 brought with it a slight recovery in London house prices, but this was not enough to counteract an overall decrease of 4.8% in the 12 months leading up to December 2023. Out of 33 boroughs, only five experienced an increase in property values, highlighting a widespread downturn in the market.
For many London homeowners, this trend has translated into a significant reduction in property value, with an average decrease of almost £32,000. The impact, however, has not been uniform across the board. Kensington and Chelsea, known for its high-end real estate, faced the steepest decline in monetary terms, with average prices dropping by £178,902, or 13.7%.
Prime central London areas were among the hardest hit, with the City of London and Westminster seeing declines of 17.8% and 16.1%, respectively. Hammersmith and Fulham also experienced a notable decrease, with property values falling by over 10%.
The Silver Lining
Despite the general downturn, some boroughs bucked the trend. Richmond upon Thames, a perennial favourite among UK residents, saw property prices rise by 3%, adding £21,936 to the value of homes. Camden, Hackney, and Islington also reported increases, albeit more modest, reflecting a resilient undercurrent in certain parts of the market.
Barking and Dagenham, offering the most affordable housing in the capital, saw prices fall by 4%, setting the average house price at £340,485. Bexley experienced a 7% drop, adjusting its average house price to £377,926.
Comparing London to the Rest of the UK
The capital’s housing market downturn was more pronounced than the rest of the UK, which saw an overall decline of 1.4% in the same period. However, industry experts remain optimistic about London’s property market rebounding, driven by high demand and a limited housing supply, coupled with falling mortgage rates and stable interest rates from the Bank of England.