Kensington and Chelsea house prices increased in September

House prices increased by 1.5% in Kensington and Chelsea in September, new figures show.

But the rise does not reverse the longer-term trend, which has seen property prices in the area suffer a 4.2% annual decline.

The average Kensington and Chelsea house price in September was £1,393,453, Land Registry figures show – a 1.5% increase on August.

Over the month, the picture was different to that across London, where prices decreased 0.6%, and Kensington and Chelsea was above the UK as a whole, where prices did not change.

Over the last year, the average sale price of property in Kensington and Chelsea fell by £60,000 – putting the area 30th among London’s 33 local authorities with price data for annual growth.

The highest annual growth in the region was in Brent, where property prices increased on average by 14.1%, to £589,000. At the other end of the scale, properties in City of London lost 14% of their value, giving an average price of £784,000.

An imbalance between supply and demand for properties saw house prices climb across the UK throughout the pandemic.

But typical property values stalled across the UK between August and September, which caused annual growth to slow.

Andy Sommerville, director at property data provider Search Acumen said the latest data is further evidence of "a turning tide for house prices".

The figures are yet to reflect the full impact of the mini-budget, announced towards the end of September, which sparked volatitility in the mortgage market and saw interest rates on new agreements soar.

Nicky Stevenson, managing director at estate agent group Fine and Country said: “Annual house price growth slowed in September against a backdrop of rising interest rates and shrinking disposable incomes."

“All eyes will now turn to Chancellor Jeremy Hunt’s autumn statement, which is expected to include both tax rises and spending cuts," he added.

First steps on the property ladder

First-time buyers in Kensington and Chelsea spent an average of £1,194,000 on their property – £56,000 less than a year ago, but £85,000 more than in September 2017.

By comparison, former owner-occupiers paid £1,614,000 on average in September – 35.2% more than first-time buyers.

Property types

Owners of detached houses saw the biggest rise in property prices in Kensington and Chelsea in September – they increased 3.9%, to £4,117,981 on average. Over the last year, prices dropped by 2.6%.

Among other types of property:

Semi-detached: up 2.1% monthly; down 2.5% annually; £4,198,137 averageTerraced: up 1.3% monthly; down 2.8% annually; £2,762,988 averageFlats: up 1.6% monthly; down 4.6% annually; £1,182,532 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 September. The average price paid would buy 11.9 homes in Burnley (£117,000), at the other end of the scale.

Across London, property prices are high compared to those across the UK, where the average cost £295,000.

Factfile

Average property price in September

Kensington and Chelsea: £1,393,453London:£544,113UK: £294,559

Annual change to September

Kensington and Chelsea: -4.2%London: +6.9%UK: +9.5%

Highest and lowest annual growth in London

Brent: +14.1%City of London: -14%