London Property Market: Are House Prices Falling in London?

London Property Market: Are House Prices Falling in London?

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 listingProperties with reduced price since initial listing
1Holland Park2410
2Hyde Park Corner2310
3Cubitt Town2210
7Brook Green2120
8Westbourne Green2113
11West Brompton2014
13Strand on the Green2012
14Childs Hill2013
15South Kensington2017
17Nine Elms1915
21St John’s Wood1918
31Shepherd’s Bush1812
33Sands End1814
36Clapham Junction1810
37Earl’s Court1811
39Maitland Park1821
40Church End1810
41West Kensington1726
42Belsize Park1712
44North Kensington1713
45Lisson Grove1731
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

Fulham Palace Road
Credit: Rightmove
Fulham Palace Road
Credit: Rightmove

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

Cricklewood Lane
Credit: Rightmove
Cricklewood Lane
Credit: Rightmove

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

Charrington Tower, Biscayne Avenue
Credit: Rightmove

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.

Property London

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