The research found that only six London boroughs were able to record house price growth in 2023, with the remaining boroughs facing declines, particularly in prime markets.
A new report by Benham and Reeves, based on the latest data from the Land Registry, shows how the capital’s housing market fared last year amid rising mortgage rates and falling buyer demand. .
Average house prices in London fell by -5.2% from January to December 2023 to £508,037 at the end of the year, the biggest fall of any region in the UK.
This is in contrast to the record highs reached during the pandemic market boom, when property prices in London soared.
“London market was unsurprisingly the hardest hit”
Mark von Glander, director at Benham & Reeves, said: “As house prices cooled in the second half of last year, unsurprisingly given that the cost of owning a home was much higher, the hardest hit was “It’s the London market, and all but a handful of houses have.” Boroughs experiencing decline.
“Broadly speaking, this decline has been small in the grand scheme of things, with most boroughs seeing only modest corrections and house prices declining compared to the record peaks seen during the pandemic market boom. It stays around there.”
He further added: “But the damage has been far more pronounced, especially across the prime market. The silver lining, of course, is that there has never been a better time to buy in London’s ultra-luxury market.”
“But rest assured that when the London market improves it quickly improves and with interest rates falling it is only a matter of time before the sleeping giant of the UK property market awakens. Not only will property prices recover, but they will once again lead the rest of the UK in terms of growth.”
The most severe decline in house prices
The report reveals that the most severe fall in house prices occurred in London’s most expensive prime boroughs, such as the city of Westminster, where average house prices fell by -20.9% (-232,015 pounds). .
Other major boroughs that saw significant declines included Kensington and Chelsea (-17.4%, -236,346 pounds), City of London (-16.6%, -160,221 pounds) and Hammersmith and Fulham (-13.2%, – 101,522 pounds).
Of London’s 33 boroughs, 27 boroughs recorded a decline in house prices, with six boroughs bucking the downward trend and achieving positive growth.
Richmond fared best with an increase of 2%, followed by Camden with 1.6% and Newham with 1.1%.
Hackney, Lewisham and Islington also saw small increases of 0.7% and 0.8% respectively.
The report finds that while the prime market remains depressed, these six boroughs offer more affordable and attractive options for buyers looking to invest in London’s property market. Suggests.