In inner London, property prices in only 5 of the 13 boroughs are at new highs. These include Islington (average price £700,790) and Lambeth (£547,400). In the remaining 8 boroughs, prices are an average of £69,900 below their previous peaks, with the biggest fall seen in the City of London, where homes are an average of £168,300 cheaper than in 2017. In Kensington & Chelsea, London’s most expensive location, properties cost an average of £1,342,830, which is £120,600 less than they did in 2018.
In the four outer boroughs where prices have not hit new highs, values are an average of £7,100 below their peaks. These include Kingston upon Thames, where homes cost £505,610 on average, and Harrow (£473,460). Homes in these locations are already expensive relative to other parts of outer London so it is not a big jump for buyers to move further out to the Home Counties and get more for their money.
The current situation is a complete reversal of the recovery in the years following the Global Financial Crisis, when it was inner London boroughs that recovered fastest and were more likely to see prices reach record levels quickly.
The last time that every London borough hit a record price in the same year was in 2014. Since then, more outer London boroughs have hit peak prices than inner London boroughs. Prime central London in particular saw fewer purchases from international buyers in the years following the Brexit vote in 2016. Although the fall in sterling has encouraged more international buyers to invest in London in recent years, the real growth is set to be in outer boroughs as the race for space continues.