A quick look at the changes in property prices throughout the London boroughs shows a quite stark turn and change in the market. Some of the would be favourite boroughs of the last few years have found themselves at the bottom of the ranks when it comes to house price growth.
So looking at this closer, amongst the five worst performers in the last quarter, we can see the following:
- The overall worst performing borough is Kensington & Chelsea, a long time favourite of the rich and famous, which saw overall median prices decline by 10% as the market saw a collapse in volumes as asking and bidding prices have continued to grow further apart
- Kensington and Chelsea was not the only one of the richer boroughs to see house price declines last quarter. In fact, other boroughs which house some of the priciest properties in London such as Richmond Upon Thames and Westminster also saw median house prices decline
In contrast a couple of the best performing boroughs saw some outstanding development over the last quarter:
- Leading the pack was the City of London which boasted 13% Q on Q growth in the last quarter as the area continues to gain in popularity with young professionals due to its proximity to major employers
- Another notably interesting borough was Southwark which has attracted a number of first time buyers due to the multitude of new developments in the area reaching maturity
Food for thought, are these trends temporary or is the change secular? Should we expect prices to recover in Kensington & Chelsea, Richmond Upon Thames in the coming quarters? Or is the best bet for investors to continue pouring money into the outer boroughs such as Southwark or Sutton?