Average house prices in London have fallen as rents rise, official figures reveal. In the city centre, tens of thousands of pounds have been wiped off the average house price. It plunged by 25% in a year in Westminster, from £1,145,000 last June to £854,000 this summer.
Sharp drops in Inner London boroughs
Other boroughs seeing sharp drops in house and flat prices include Kensington and Chelsea, Tower Hamlets, Hammersmith and Fulham, Islington, Camden and Wandsworth. For London as a whole, house prices fell by 2.5% in the 12 months to June.
At the same time, rents are rising for many Londoners, up on average by 3% across the capital in the year to July. The biggest increases were in Islington, Greenwich, Enfield, Merton, Lambeth and Richmond.
Borough-by-borough breakdown
Average house prices fell in 18 boroughs and rose in 14. In contrast, average rents went up in the year to July in 30 boroughs, and down in only two.
The biggest drops in house prices in the year to June were in Inner London: Kensington and Chelsea down 14.7%, or a drop of £216,000 from £1,466,000 to £1,250,000; Hammersmith and Fulham down 13.3% from £837,000 to £726,000, or a fall of £111,000; Tower Hamlets down 13.1% from £526,000 to £457,000, or £69,000; Islington down 8.1% from £733,000 to £673,000, or £60,000; Camden down 7.1% from £897,000 to £833,000, or £64,000; Wandsworth down 5.2% from £717,000 to £680,000, or £37,000.
Rent increases and policy impact
The largest increases in rents were in: Islington, up 5.9% from £2,694 a month to £2,854; Greenwich, up 5.6% from £1,876 to £1,980; Enfield, up 5.1% from £1,732 to £1,821; Merton, up 4.6% from £2,059 to £2,153; Lambeth, up 4.2% from £2,417 to £2,519; Richmond up 4% from £2,230 to £2,318. The Renters’ Rights Act has given renters new protections over rent rises, challenging unfair increases and eviction following shocking cases of poor housing and treatment of tenants in London. However, landlords have warned it will push up costs. Full details on house prices and rents for each borough can be found on the ONS housing website section.
