It’s not been an easy ride for London’s most prestigious homeowners since the market crash of 2007 when property values across prime central London plummeted (and everywhere else for that matter). To rub salt in the wound, the top end of the market has seen the largest adjustment in asking prices due to the impact from an uncertain market in Brexit limbo.
But our research has looked at just how bad the damage is in a market where even a small percentage drop can mean big bucks and if London’s high-end homeowners are in as much trouble as reported.
Kensington and Chelsea
In the height of the property market crash, the average house price in Kensington and Chelsea hit a low of £598,430, fairly affordable given the borough’s usual property pedigree.
But despite this, prices have bounced back and since then the average house price has increased by 138%. That’s £825,107 and enough to buy a private jet!
Since Brexit, prices have managed a modest 14.2% increase equating to £177,186, or in other terms, enough to buy a house outright in Liverpool, Belfast, Dundee, Newcastle, Sheffield, Swansea and a number of other areas in the UK.
So Kensington and Chelsea homeowners are doing okay…what about in Islington?
Islington
Again at its worst, prices in Islington slumped to £326,811 during the crash but just like Kensington and Chelsea, the area has seen growth of over 100% since then (102.6%) - enough for a luxury yacht.
Since the Brexit vote, however, the mere increase of £29,357 means that Islington homeowners may have to settle for something a bit smaller like a speed boat.
It’s not all price-growth parties in prime central London and for those living in Hammersmith, Fulham and Westminster, Brexit has inconveniently seen the boroughs become the poor relation of their more successful neighbours.
Hammersmith and Fulham and Westminster
Since June 2016 in Hammersmith and Fulham, the average house price has fallen by 7.3% which equates to £56,443! That’s essentially a brand new Land Rover down the drain.
While in Westminster prices have also fallen by -4.6% since Brexit, an equally eye-watering £46,296 or a brand new, state of the art kitchen and a Louis Vuitton handbag, plus some pocket change.
But looking on the bright side, Hammersmith and Fulham and Westminster homeowners have seen prices increase since their 2009 slump. The £313,314 (76.6%) jump in Hammersmith is enough for not one, but two Bentley Continental GTs while the £468,603 (93.3%) jump in Westminster is enough for a Lamborghini Aventador, a helicopter and a Harley Davidson.
Growth Expert and Yomdel CEO Andy Soloman said…
“The top end of the market is always the first to slow in tough market conditions, as even a 5% drop in prime central London equates to a far greater financial loss than other areas of the UK and so buyers tend to tread more cautiously. But as with the wider landscape, this research shows that prime central London has the same regional differences as the wider market and not everyone is out of pocket.
While we often read about percentage drops and growth trends, we thought we would reassure the general public that the top end of the London market hasn’t completely frozen over, by putting the changes in house price movements into more relatable terms.”
