Real estate specialists at 1newhomes advise prospective homeowners on attractive London boroughs with decreasing house prices.
Despite the property boom in the UK and real estate prices skyrocketing across the country, there are five sought-after London boroughs, including Kensington and Chelsea, where it has become a little easier to get on the property ladder. Many say that the London property market has dodged the general trend of soaring prices. In fact, in some areas properties are sold at around 13% less the price compared to 12 months earlier.
When the country went into the lockdowns, the property price growth rate reached a new 17-year record high. Some property experts attribute this heated market activity to the introduction of the Stamp Duty Holiday. According to the suggestions by ONS, the tax relief have resulted in sellers jacking up asking prices since buyers were exempted from the stamp duty tax.
Undoubtedly, Londoners relocating from busy Central London streets to cozy suburban areas have also driven up the market rush. This trend is mostly due to the dramatic pandemic-led shifts in buyers demand and work-life priorities.
While property prices in leafy suburbs have skyrocketed as excited buyers have been trying to snap up spacious properties, properties in five London boroughs have seen something different – prices have fallen.
Based on the available data by ONS, properties in five London areas have become easier to get, which gives some handy UK real estate market insights.
Top 1 – The City of London
The City of London has become the top 1 London area with the most noticeable real estate price drop over the last 12 months.
Known as Square Mile, this Central London borough has seen average property prices falling by more than 13%. Taking into account the modest size of the borough, this trend is based on only a few property deals.
It is little surprise that the wide implementation of remote work since the pandemic hit has significantly affected the area as lots of workers did not have to commute any longer. While around 10% of Londoners (more than 500,000 people) work in The City of London, it is home to only 7,700 people.
Top 2 – The City of Westminster
The City of Westminster ranked second place with property prices down by almost 8%. This area is much larger compared to the City and is home to 250,000 Londoners. There is a wide range of properties available – from classy townhouses to affluent spacious homes.
Westminster is a prime London borough. It is home to Buckingham Palace, where Royal Garden Parties are held in the summer. Moreover, the City of Westminster boasts more than 11,000 listed buildings and 4 Royal Parks.
Top 3 – Kensington and Chelsea
The Royal Borough of Kensington and Chelsea is known for its premium property, and new builds in Central London can be particularly pricy in this area. Living here means being neighbors with honorable residents. In 2020, lucky buyers acquired properties here at £1.3m on average, while the price dropped to £1.23m this year, meaning a decrease of 4.8%.
Even though the borough cannot boast its size, it is home to a remarkable number of Londoners and offers both premium real estate and top-notch entertainment. There are several exceptional London attractions in Kensington and Chelsea, including the Natural History Museum and trendy Knightsbridge shopping streets.
In South London, there are areas with growing property prices (e.g. Greenwich). This is in sharp contrast with Southwark, where properties have become 1.7% more affordable.
Despite sitting the south of the Thames, Southwark is well-located in the center and is home to many prime London attractions, including the British Museum and the Tower of London.
The area attracts many ambitious students to live here as well. Several world-renowned universities, including UAL, are located in Southwark.
Hackney closes the chart of the top 5 London boroughs with average property prices falling down. Over the last 12 months, homes here have become 1.6% more affordable. On average, property prices in this North-East London borough exceed the £500k range.
Hackney is the London borough with the most rapid growth pace where more than 1000 new homes were being built between 2017 and 2018. However, it boasts lots of greenery and offers possibilities for a wholesome lifestyle.
No secret that property prices in the above-mentioned London boroughs vary greatly, and you can hardly find available studio apartments, for example, in the City of Westminster. However, there are neighboring boroughs and districts of more balanced price levels where you can look for a London studio for sale.