London Property Prices
London Has a Two-Tier Home Market as Apartment Values Fall 11%

London’s property market is in flux with house prices continuing to rise and apartments declining in value.

Apartments are down more than 11% from their peak in August 2020, with the median sale now less than 400,000 pounds, according to an analysis of UK Land Registry data for April by Bloomberg News.

The figures, which are smoothed to remove outlier transactions, show the median price paid for a house reached a new high of almost 634,000 pounds ($768,500).

Falling Flats

Median price (trend) for all London boroughs

Source: HM Land Registry data © Crown copyright and database right 2021

The mixed picture suggests that the steam is starting to come out of the capital’s property market. A number of boroughs are seeing price declines compared with a year earlier, as higher mortgage rates and a surge in the cost of living limit the amount buyers can pay for homes.

Prices fell in areas where apartments are prevalent, including Lambeth, Tower Hamlets and Greenwich. Buyers may not be as willing to pay as much for such homes, especially those with limited or no outside living space, something that’s become much more desirable since the pandemic.

The data does suggest some positive news for property developers. The premium for new homes in the capital has soared, with the median in March almost 680,000 pounds compared with 517,000 pounds for existing homes. That said, this may be due to a change in the type of properties being sold.

London is the worst-performing property market, with values up 3.9% in the year through May, Zoopla said in a report on Friday. That’s less than half the UK average. It also takes longer in the capital to sell a home than in other regions, according to the property portal.

Source: U.K. Land Registry, Bloomberg reporting

Edited by: Fergal O'Brien
Research by: Julian Burgess, Brittany Harris, Neil Callanan
Design & development: Julian Burgess, Brittany Harris, Jeremy Scott Diamond and Hayley Warren

Methodology: Bloomberg analyzed all residential property sales from data produced by Land Registry © Crown copyright 2016 and compared it to 12 months earlier. We excluded property sales which did not have a valid postcode. Median prices have been seasonally adjusted using an independent LOESS regression model for each area. The Land Registry figures do not include home sales done via company transfer and below-market sales.

The map images on this page contain Ordnance Survey data © Crown copyright and database right 2012, Royal Mail data © Royal Mail copyright and database right 2012, National Statistics data © Crown copyright and database right 2012, Postal Boundaries © GeoLytix 2012 copyright and database right 2012.

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