London house prices: the 25 boroughs where prices are falling
House prices in London are slipping, with almost 80% of the capital's boroughs recording falls so far this year.
The latest data from the Land Registry's House Price Index shows some areas have seen prices drop by more than 5%.
Boroughs where prices average between £400,000 and £500,000 have seen the sharpest decreases, while homes in more expensive areas have continued to rise in price.
Here, we reveal where house prices are cooling and which of the capitals boroughs are most affordable for home buyers.
What's happening to house prices in London?
In the first half of 2023, the average house price in London dropped by 1.1% – from £534,000 in January to £528,000 in June.
That's a slightly bigger decrease than the 0.8% fall recorded for the UK as a whole.
Of London's 32 boroughs, 25 saw prices fall.
These figures are based on data from the Land Registry's UK House Price Index, which is based on property sales.
The Index works on a two-month lag, so the most recent figures are for June.
- Find out more: average house prices in your region
The prices in every London borough
House prices in London vary significantly, so to see exactly what's behind these price drops we need to look at the figures more closely.
Below, we've broken down average prices in each borough, comparing the difference between the start of the year and June.
Inner London
There's a split down the middle in inner London, with half of the boroughs recording price increases and the other half recording price decreases.
The most expensive areas in the country – Westminster (+10%) and Kensington and Chelsea (+5.2%) – had the biggest price rises in the opening six months of the year.
Greenwich (-4.9%) and Wandsworth (-3.5%) saw the steepest drops.
| Borough (A-Z) | January 2023 | June 2023 | Difference |
|---|---|---|---|
| Camden | £840,254 | £880,889 | +4.8% |
| Greenwich | £445,080 | £423,153 | -4.9% |
| Hackney | £635,885 | £626,355 | -1.5% |
| Hammersmith & Fulham | £749,383 | £776,673 | +3.6% |
| Islington | £670,999 | £696,363 | +3.8% |
| Kensington & Chelsea | £1,278,200 | £1,345,057 | +5.2% |
| Lambeth | £554,374 | £537,524 | -3% |
Source: UK House Price Index
Outer London
While inner London is split, the city's outer boroughs paint a solid picture of price decreases.
Only two areas – Merton (+2.6%) and Richmond upon Thames (+1%) – saw increases between January and June; the rest recorded price drops.
Croydon (-5.4%) and Redbridge (-5.3%) were the biggest fallers across the whole city.
| Borough (A-Z) | January 2023 | June 2023 | Difference |
|---|---|---|---|
| Barking & Dagenham | £353,635 | £347,148 | -1.8% |
| Barnet | £594,530 | £574,285 | -3.4% |
| Bexley | £401,802 | £396,025 | -1.4% |
| Brent | £558,239 | £541,559 | -3% |
| Bromley | £519,294 | £505,758 | -2.6% |
| Croydon | £434,426 | £410,784 | -5.4% |
| Ealing | £546,165 | £536,338 | -1.8% |
Source: UK House Price Index
Where are the cheapest London boroughs?
Barking and Dagenham is the most affordable borough in the capital, with the average house price coming in at £347,000.
That's still £60,000 higher than the UK average and more than double the price of an average home in the North East of England.
Bexley (£396,000) is the second-cheapest borough, followed by Croydon (£411,000), where prices have fallen at the sharpest rate in 2023.
You can compare prices across London boroughs in our map below.
How long does it take to sell a property?
Demand from home buyers has cooled over the past year as high mortgage rates affect the number of homes being sold, both in London and across the UK.
Halifax says Londoners now spend half their earnings on mortgage repayments as a result of high interest rates. The average two-year fix is now 6.7% and a five-year fix is 6.2%.
As of July, Rightmove says London sellers are taking an average of 61 days to secure a buyer.
While that marks an improvement on the start of the year, when the figure stood at 74 days, it is two weeks longer than a year ago.
The most recent Land Registry data shows Wandsworth as the borough with the most monthly transactions (182), followed by Bromley (174) and Havering (134).
- Find out more: why isn't my house selling?
Buying a house in London
If you want to buy a home in London, it can be tough to get a large enough deposit or be able to borrow enough based on your income.
If you're buying in the cheapest borough, Barking and Dagenham, a 5% deposit for the average home would cost around £17,000. To open up the best mortgage rates, a 40% deposit would come in at almost £140,000.
According to the estate agency Hamptons, 30% of first-time buyers in London receive financial support from their family when putting down a deposit. The average gift is £34,000.
In addition to the costs of buying a house, you'll need to consider expenses such as council tax and the cost of commuting.
Each borough sets its own council tax rates, meaning you'll need to pay significantly more in some areas than others.
Our guide on buying a house or flat in London details everything you need to consider, and we give advice on schemes such as shared ownership and London Living Rent.
- Find out more: deposit calculator – how long will it take you to save what you need?
