House prices have fallen by more than 10% in four London boroughs over the past year as the capital’s sales market continues to weaken.
Analysis reported by the Evening Standard shows average prices fell in 20 London boroughs in the year to July, despite rents continuing to increase across almost all of the capital.
Westminster recorded the largest decline, with its average property price falling 20.7% from £1.106m in July 2025 to £877,000 this summer.
Tower Hamlets, Kensington and Chelsea and Camden also recorded double-digit falls.
INNER LONDON FALLS
According to figures reported by the Evening Standard, the average Tower Hamlets property fell 14.4% from £523,000 to £448,000.
Kensington and Chelsea recorded a 14.1% decline from £1.435m to £1.233m, while Camden prices dropped 10.1% from £907,000 to £815,000.
Hammersmith and Fulham fell 9%, followed by Lambeth at 6.3%, Wandsworth at 5.5%, Newham at 5% and Barnet at 4.9%.
Eleven boroughs nevertheless recorded price increases, led by Barking and Dagenham, where the average rose 5.3% to £376,000.
Across London, prices fell 3.3% annually in July.
RENTS KEEP RISING
The picture is markedly different in the rental market.
The Evening Standard reports rents increased in almost every London borough, with Islington recording the largest annual rise at 6.2%.
Greenwich rents increased 6.1%, while Southwark and Merton both recorded growth of 5.4% and Enfield 5.1%.
Across the capital, average rents increased 3.6% in the year to August.
The contrasting figures point to an increasingly divided London housing market, with falling sale prices doing little to ease the pressure facing tenants.
