London Property Market: Are House Prices Falling in London?

By Property London
February 17, 2021

Halifax this week published figures that showed in January property prices suffered their biggest fall since April last year. Prices slipped by -0.3% in January across the UK, pushing property value down to its lowest level since October, at just under £252,000. Adding to Londoners woes, The Times wrote this week about the exodus of workers impacting London property prices

The data is divided by area within London and it shows how many reduced properties are currently up for sale and by how much they’ve reduced by. We’ve removed towns that have less than 10 properties that have had their price reduced.

Table of where London houses have been reduced & their average reduction

The highest % reductions have been seen in Holland Park with properties that have been reduced since the initial listing, dropping by an average of 24. Holland Park isn’t the only badly hit area in Kensington and Chelsea. Hyde Park Corner, Kensington, and South Kensington also have a high number of reduced properties

Notably, Paddington (37), Lisson Grove (31) and Marylbone (30) currently have the most properties for sale that have seen their initial asking price reduced.

#	Town	% price has reduced by since first listing	Properties with reduced price since initial listing
1	Holland Park	24	10
2	Hyde Park Corner	23	10
3	Cubitt Town	22	10
4	Blackwall	22	11
5	Kilburn	22	10
6	Kensington	22	14
7	Brook Green	21	20
8	Westbourne Green	21	13
9	Marylebone	21	30
10	Fulham	21	12
11	West Brompton	20	14
12	Belgravia	20	19
13	Strand on the Green	20	12
14	Childs Hill	20	13
15	South Kensington	20	17
16	Bromley	19	15
17	Nine Elms	19	15
18	Brompton	19	10
19	Paddington	19	37
20	Bermondsey	19	10
21	St John’s Wood	19	18
22	Millbank	19	15
23	Croydon	19	11
24	Brentford	19	10
25	Stockwell	19	11
26	Bayswater	19	29
27	Richmond	19	13
28	Pimlico	19	14
29	Battersea	19	13
30	Chelsea	18	20
31	Shepherd’s Bush	18	12
32	Brixton	18	11
33	Sands End	18	14
34	Bloomsbury	18	12
35	Hammersmith	18	16
36	Clapham Junction	18	10
37	Earl’s Court	18	11
38	Vauxhall	18	13
39	Maitland Park	18	21
40	Church End	18	10
41	West Kensington	17	26
42	Belsize Park	17	12
43	Ealing	17	16
44	North Kensington	17	13
45	Lisson Grove	17	31

London Property Market: Are House Prices Falling in London?

Comments from Raj Dosanjh, Rentround founder

The property market is on edge at the moment. The stamp duty holiday duration, end of furlough, Brexit, and working from home practices are creating a real risk to London property prices and rental amounts. It’s unclear if the news from Halifax warrants panic at this stage, or if it’s just a blip. Nevertheless, it’s another thing to worry about for London property owners & landlords. The price reductions appear to be centered towards the West & North West of London, which will worry property owners & landlords in those areas.
In parallel to this news, January saw the highest number of London landlords using our platform to compare letting agents fees & services. Our data shows that guaranteed rent is a service in demand. Searches for this service increased by 22% over the last quarter, indicating landlords are looking to lock in some of their rental income.
However many letting agents on Rentround have pulled back their guaranteed rent services or increased their prices. Landlords looking to obtain the security this service provides in the midst of worker migrations out of London (which will impact rental income), may find it difficult.

Top 3 properties that have seen the highest price reductions since first listing

Below are the top 3 London properties currently for sale, that have seen the highest reduction in property price as compared to the initial listing price

1. Fulham Palace Road: The asking price has been reduced by 48% from the first listing price

Current price: £1,300,000

On the market for 185 days, situated close to Bishop’s Park on the junction of the Fulham Palace Road and the Fulham Road. The property comprises a first-floor studio flat, second-floor one-bedroom flat, third-floor studio flat including a westerly-facing terrace with panoramic views and a ground floor and basement A2 commercial unit with a well-maintained courtyard with rear access. Occupying approximately 1200 sq ft of internal floor space

2. Cricklewood Lane, London: The asking price has been reduced by 46% from the first listing price.

Current asking price: £490,000

On the market for 190 days, a high-quality apartment with a spacious open living area and benefiting from integrated kitchen appliances. It has great connectivity to the city whilst still taking advantage of the village area in West Hampstead. The property is being marketing towards working professionals.

3. Charrington Tower, Biscayne Avenue, London: The asking price has been reduced by 43% from the first listing price.

Current price: £995,000

A 2 bedroom apartment within a premium riverfront development, known for its privacy, peace, and tranquillity. The apartment comprises a spacious reception with floor-to-ceiling windows, a balcony with bright decor, an elegant dining area, and a stylish fully fitted kitchen. The development offers residents a 24-hour concierge, residents gym, a 25-meter lap pool, a sauna, a steam room, and hydro pool.