Pockets of the London property market have slumped by as much as £92,861 in the first seven months of year, despite average house prices climbing across the UK, says HBB Solutions.
The City of Westminster has seen home prices tumble by £13,266 each month to the end of August, says the chain-repair property buyer.
Several studies have shown that prices of prime properties in the capital have been hit by fewer international buyers and the ‘race for space’ sparked by the pandemic.
HBB points out that since the start of the year the average UK house price has lifted by £18,619, or £2,660 per month, “despite fears that a downturn could be on the cards”.
It adds that London house prices have increased by almost £25,500 since the start of the year, an average monthly increase of £3,641.
UK house prices slipped in August, slowing to annual growth of 11.5% from 11.8% in July, putting the average property price at £294,260, according to Halifax.
However, HBB data shows how several housing pockets in the capital have suffered price falls this year.
It says Camden has been the second worst hit area of the property market, with house prices dropping £7,754 per month on average since January, with Kensington and Chelsea also making the top three, down by an average of £4,583 per month.
Outside London, Elmbridge is the worst performing market, where the average house price has seen £307 erased on average each month in 2022.
Other poorly performing areas include, Gravesham, down £289 a month, Dover, down £68, and Eden, down £8 have also seen monthly average monthly price declines this year, albeit to a lesser extent.
HBB Solutions managing director Chris Hodgkinson says: “We’ve become accustomed to weekly reports detailing the meteoric rates of house price growth that have been sweeping the country and it’s fair to say that homeowners have had a pretty good run of it.
“However, we’re now seeing signs that cracks are starting to appear, with the rate of house price growth starting to ease. Of course, this is simply a topline view and one that doesn’t provide a realistic picture of the market at a more granular level.
“So, while some homeowners have benefitted from a sharp increase in the value of their home since the start of this year, others have not been so fortunate. In fact, in some areas of the market, the average value of a home has been reducing by thousands of pounds a month since the start of the year.”