Why are house prices in London declining?

A sharp decline in house values has hit one of London’s wealthiest boroughs.
New data from Zoopla reveals that in 2024, 72 per cent of homes in Kensington and Chelsea saw their value drop by at least one per cent, impacting over 73,000 properties.
On average, house prices in the borough fell by over £44,000.
Kensington and Chelsea isn’t alone. Coastal towns in Kent and East Sussex were among the worst-hit areas, with some towns seeing less than 10 per cent of their homes increasing in value.
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Produced by: Saskia Koopman, Larissa Howie, Joseph Curay Teneda, Emmanuel Nwosu
#housingmarket #house #london #houseprices #costofliving

[@TheJacob95]

Sorry but why is it bad news if house prices fall?

[@dcoughla681]

It is for home owners who are desperate to sell, particularly those who have overpaid, are in the wrong location or have lost their jobs. If we go into recession, those people are stuffed. Only the international super rich can afford Kensington & Chelsea prices & the decline of house prices signals their thoughts on the health of the wider UK economy & London as an attractive place to live.

[@alexandermcnulty8425]

​@dcoughla681 Desperate to sell but can't sell is a clear sign that the home is overvalued and that the price needs to fall. Basic supply and demand. Housing seems to be the only asset where the price can't be allowed to fall but if you overspent and are now losing money, that's on you for buying an overvalued asset. If I bought a share at its peak price and it halved in value, no one would be complaining on my behalf that it was unfair.

[@dcoughla681]

@@alexandermcnulty8425 I wasn’t talking about me personally! Desperate to sell could also mean an unexpected change in circumstances or a sudden sharp downturn in the economy.

[@17cristian]

House prices need to fall ..

[@IndustrialBonecraft]

Oh no! The Billionaires!

[@elriano1]

70% of social houses and flats in Kensington are occupied by foreigners. Foreigners have moved in and made the area less desirable, all of the Brits are fleeing. When British millionaires, who contribute 25% of our total taxes generated, leave the UK only to be replaced with foreigners who need to be subsidised by the taxpayer, you end up with a failing economy and public services which no longer function, i.e. the NHS. So unless you're pro-austerity and pro-NHS privatisation, this isn't a good thing.

[@andrew4809]

Peasant areas are doing alright

[@billcheung4439]

u say house prices fall? some say house prices up? who lies?

[@jiamaono8044]

Big houses are falling, small prices are up.

[@gkhan8765]

Whyte flight.

[@elriano1]

It is, the UK has the 2nd highest number of millionaires immigrating out of the country. Only China has more.

[@michaelfong6941]

Russian flight in Kensington