Kensington and Chelsea house prices dropped in June

House prices dropped by 2.4% in Kensington and Chelsea in June, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 12.2% over the last year – the highest in London.

The average Kensington and Chelsea house price in June was £1,362,055, Land Registry figures show – a 2.4% decrease on May.

Over the month, the picture was different to that across London, where prices increased 1.9%, and Kensington and Chelsea was lower than the 1% rise for the UK as a whole.

Over the last year, the average sale price of property in Kensington and Chelsea rose by £148,000 – putting the area top among London’s 33 local authorities with price data for annual growth.

At the other end of the scale, properties in Camden gained 1.9% in value, giving an average price of £830,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

First steps on the property ladder

First-time buyers in Kensington and Chelsea spent an average of £1,168,000 on their property – £119,600 more than a year ago, but £5,100 less than in June 2017.

By comparison, former owner-occupiers paid £1,575,700 on average in June – 34.9% more than first-time buyers.

Property types

Owners of detached houses saw the biggest fall in property prices Kensington and Chelsea in June – they dropped 4.4% in price, to £4,016,071 on average. But over the last year, prices rose by 18.5%.

Among other types of property:

Semi-detached: down 3.3% monthly; up 18.3% annually; £4,090,247 averageTerraced: down 2.3% monthly; up 16.3% annually; £2,708,266 averageFlats: down 2.4% monthly; up 10.8% annually; £1,154,943 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 June. The average price paid would buy 11.7 homes in Inverclyde (£116,000), at the other end of the scale.

Across London, property prices are high compared to those across the UK, where the average cost £286,000.

Factfile

Average property price in June

Kensington and Chelsea: £1,362,055London:£537,920UK: £286,397

Annual growth to June

Kensington and Chelsea: +12.2%London: +6.3%UK: +7.8%

Highest and lowest annual growth in London

Kensington and Chelsea: +12.2%Camden: +1.9%