Key facts
- London house price losses accelerated in June.
- The average asking price for newly listed homes in the UK fell 2% in the past month.
- London's asking prices dropped 4.4% in the past month.
- Kensington and Chelsea saw average new asking prices fall by over £95,000 in a month.
- Sales of London luxury property were down nearly 12% in July 2026 year-on-year.
- Price growth in London's luxury zones has stalled at 0.4%.
London house prices saw an accelerated slowdown in June, with the capital's most desirable postcodes experiencing further value erosion. The average price of newly listed homes across Britain fell by 2% in the past month, the largest August drop in eight years, according to property website Rightmove. This national figure masks a divided regional picture, with London experiencing the most significant decline of 4.4%, equating to nearly £30,000 off a new asking price.
In the Royal Borough of Kensington and Chelsea, the average new asking price dropped by over £95,000 in a month, falling to £1,552,970. Rightmove data indicates that the number of homes for sale in London is at a 16-year high, intensifying competition among sellers. Property experts suggest sellers are increasingly pricing more competitively to attract buyers who are stretched by higher mortgage rates and economic pressures.
Separate data from LonRes revealed that sales of London luxury property decreased by nearly 12% in July 2026 compared to the previous year, with prime central London sales volumes down around 8% from pre-pandemic averages. New listings in these prime areas are up 22% year-on-year, and price growth has stalled at approximately 0.4%, significantly below inflation. This contrasts with secondary prime markets like Marylebone, Fitzrovia, Wandsworth, and Battersea, which are showing resilience as buyer demand shifts.
Factors such as changes to the non-dom regime and broader UK tax framework adjustments are influencing international buyer decisions. While the market is described as adjusting rather than collapsing, the sustained weakness in prime central London is prompting questions about its traditional role as a safe-haven asset.