Kensington and Chelsea house prices dropped in January

EMBARGOED TO 00001 TUESDAY OCTOBER 26 File photo dated 14/10/14 of estate agents boards. The housing market is set to record its highest level of sales this year since 2007, according to a property website. Issue date: Tuesday October 26, 2021.

House prices dropped by 1.8% in Kensington and Chelsea in January, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area achieve 5.8% annual growth.

The average Kensington and Chelsea house price in January was £1,403,815, Land Registry figures show – a 1.8% decrease on December.

Over the month, the picture was similar to that across London, where prices decreased 1.8%, and Kensington and Chelsea underperformed compared to the 0.4% rise for the UK as a whole.

Over the last year, the average sale price of property in Kensington and Chelsea rose by £76,000 – putting the area 16th among London’s 33 local authorities with price data for annual growth.

The best annual growth in the region was in Islington, where property prices increased on average by 13.4%, to £760,000. At the other end of the scale, properties in Tower Hamlets lost 5.1% of their value, giving an average price of £438,000.

Winners and Losers

Owners of detached houses fared worst in Kensington and Chelsea in January – they dropped 3.9% in price, to £3,840,283 on average. But over the last year, prices rose by 8.9%.

Among other types of property:

Semi-detached: down 3.4% monthly; up 9.2% annually; £3,986,287 averageTerraced: down 2.7% monthly; up 7.5% annually; £2,667,054 averageFlats: down 1.5% monthly; up 5.1% annually; £1,209,734 average

First steps on the property ladder

First-time buyers in Kensington and Chelsea spent an average of £1,210,700 on their property – £60,400 more than a year ago, but £7,600 less than in January 2017.

By comparison, former owner-occupiers paid £1,613,800 on average in January – 33.3% more than first-time buyers.

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 January. The average price paid would buy 12.7 homes in Burnley (£110,000), at the other end of the scale.

Across London, property prices are high compared to those across the UK, where the average cost £274,000.

Factfile

Average property price in January

Kensington and Chelsea: £1,403,815London:£510,102UK: £273,762

Annual growth to January

Kensington and Chelsea: +5.8%London: +2.2%UK: +9.6%

Best and worst annual growth in London

Islington: +13.4%Tower Hamlets: -5.1%