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London Flat Values Fall Below 2017 Levels, Data Shows

London flats are now valued below their 2017 levels on a per square metre basis, according to new analysis.

  • London flats are currently priced at £6,639 per square metre, compared to £6,787 nine years ago.
  • Terraced houses in London increased 40% in value during the same period.
  • Kensington & Chelsea saw the steepest decline in flat values, falling 26% from a 2018 peak.

London flats are currently valued below their 2017 levels on a per square metre basis, according to an analysis of over one million property transactions. Data from Gaffon.com shows flats are priced at £6,639 per square metre, a decrease from £6,787 nine years ago.

In contrast, terraced houses in London have seen a 40% increase in value over the same period, indicating a divergence in the capital's property market. The analysis combined sales values from the Land Registry with Energy Performance Certificate (EPC) data.

Regional variations are evident across London boroughs. Kensington & Chelsea experienced the largest decline, with values dropping 26% from a 2018 peak. Waltham Forest is the only borough to record a per square metre record, showing a 2% increase.

The analysis suggests that nominal London flat prices have remained largely static since 2022. With approximately 20% inflation since 2022, the data indicates that real values have fallen substantially.

Why this matters: The divergence between flat and house values may influence investment strategies, particularly as government schemes often target first-time buyers who typically enter the market through flats.

What this means for you: If you own a flat in London, its per square metre value may be lower than in 2017. If you are a first-time buyer considering a flat, the market may present distinct challenges compared to houses.

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