London's property market has hit rock bottom, with prices plummeting 8.7% in just one year – and flats bearing the brunt of it. The average price for a home in inner London now stands at £687,415, according to property experts E.surv.
The flat sector is particularly hard hit, with prices in inner London now 11.2% below their pre-pandemic levels in April 2020. This has sent shockwaves through the market, leaving investors and homeowners on edge as they worry about the long-term implications for property values.
E.surv points to a perfect storm of factors contributing to the decline in flat prices: higher mortgage rates making borrowing more expensive, increased service charges taking a bigger bite out of buyers' pockets, and tax changes hitting affordability even harder. The loss of Help to Buy has also had a significant impact on demand for new-build flats.
As the property sector grapples with rising void costs and regulatory changes, sellers and lenders are bracing themselves for a more uncertain market – one where prices must reflect weaker demand, higher buyer costs, and increased competition from similar stock.