Kensington and Chelsea house prices crashed 6.4% in October

House prices crashed by 6.4% in Kensington and Chelsea in October, new figures show.

The large drop contributes to the longer-term trend, which has seen property prices in the area suffer a 7.1% annual decline – the worst in the UK.

The average Kensington and Chelsea house price in October was £1,355,928, Land Registry figures show – a 6.4% decrease on September.

Over the month, the picture was different to that across London, where prices decreased 0.9%, and Kensington and Chelsea was lower than the 0.3% rise for the UK as a whole.

Over the last year, the average sale price of property in Kensington and Chelsea fell by £104,000 – putting the area bottom of the UK’s local authorities for annual growth.

The highest annual growth in the region was in Tower Hamlets, where property prices increased on average by 12.5%, to £484,000.

Average UK house prices increased by 12.6% in the year to October, accelerating from 9.9% in September.

The increase in the annual percentage change was partly caused by a sharp fall in average house prices in October 2021, following changes to stamp duty.

The average UK house price was £296,400 in October, which was £33,000 higher than a year earlier.

Tom Bill, head of UK residential research at Knight Frank, said: “Despite today’s figures, double-digit UK house price growth is now a thing of the past.

“Even as the reverberations of the mini-budget fade, a more adverse lending landscape is emerging after 13 years of ultra-low rates."

First steps on the property ladder

First-time buyers in Kensington and Chelsea spent an average of £1,163,000 on their property – £91,000 less than a year ago, but £49,000 more than in October 2017.

By comparison, former owner-occupiers paid £1,569,000 on average in October – 34.9% more than first-time buyers.

Property types

Owners of detached houses saw the biggest fall in property prices Kensington and Chelsea in October – they dropped 7.2% in price, to £3,955,169 on average. Over the last year, prices dropped by 7.4%.

Among other types of property:

Semi-detached: down 7.2% monthly; down 6.9% annually; £4,048,156 averageTerraced: down 6.6% monthly; down 6.2% annually; £2,684,374 averageFlats: down 6.3% monthly; down 7.4% annually; £1,151,664 average

How do property prices in Kensington and Chelsea compare?

Buyers paid more for properties in Kensington and Chelsea than anywhere else in the UK in October. The average price paid would buy 11.3 homes in Burnley (£120,000), at the other end of the scale.

Across London, property prices are high compared to those across the UK, where the average cost £296,000.

Factfile

Average property price in October

Kensington and Chelsea: £1,355,928London:£541,720UK: £296,422

Annual change to October

Kensington and Chelsea: -7.1%London: +6.7%UK: +12.6%

Highest and lowest annual growth in London

Tower Hamlets: +12.5%Kensington and Chelsea: -7.1%