The borough with the highest property prices in London, Kensington and Chelsea, had an average price for a flat that was about 700,000 British pounds higher than the London average. London is the most populous metropolitan area in the UK, and living in it comes with a price tag. Unsurprisingly, the most expensive boroughs in terms of real estate prices are located in the heart of the metropolis: Kensington and Chelsea, the City of Westminster, and the City of London. In Kensington and Chelsea, home to several museums such as the Natural History Museum, the Victoria and Albert Museum, and the Science Museum, as well as galleries and theaters, the average price of apartments was almost 1.15 million British pounds. In comparison, the average house price in England was approximately 286,000 British pounds in 2022.
How have residential property prices developed in recent years?
The monthly house price index in London, England has steadily increased since 2015, despite a period of slower growth between 2016 and 2019. Since 2015, chosen as a base year by the UK House Price Index, house prices in London have risen by over 30 percent. While this increase might be substantial, house prices in England increased at an even higher rate. Nonetheless, the property market experienced a significant slowdown in 2022 due to the inevitable impact of the escalating interest rates. Across London's boroughs, flat prices declined by up to 10 percent between August 2022 and August 2023.
Are residential property prices in London expected to grow in the future?
Despite property prices declining in 2023, the market is forecast to continue to grow in the next five years, according to a March 2023 forecast. Some of the reasons for this are the robust demand for housing and the chronic shortage of residential properties.