Here we put a lens on the events and dynamics affecting property prices in Kensington & Chelsea. Some of the capital’s most prestigious residential areas have seen house prices drop sharply recently with a sustained high demand at the lower end of the market.
Kensington & Chelsea, the most expensive borough in the UK, has seen prices drop by up to 7 per cent between June and July according to some measures. This follows on from a year-on-year growth of 10 per cent up till then. This has a common trend in other high end boroughs throughout central London (e.g. Camden, Westminster).
Month on month data can be misleading though especially as high end sellers have a tendency to prioritise their summer holidays over the idea and hassle of putting their properties up for sale. But this fall in inner London house prices is likely also a reflection of the slowing high end property market, with demand moving to outer London boroughs where prices are more affordable for people living and working in London. Average prices in the top five performing boroughs were all below £600,000 well below the average in Kensington & Chelsea or say Richmond Upon Thames where the averages are well in excess of £800,000.
The London property market is stretched on a affordability basis by most measures but the lower-end sector and specifically demand for 1 or 2 bed apartments from first-time buyers and investors has been remains at long term highs.
Across London as a whole prices are flat on the month and up 8 per cent on the year.