House prices nosedive in central London - what's happening in your area?

House prices nosedive in central London - what's happening in your area?Property prices are dropping sharply in several areas of the capital but rising in others

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House prices have plunged in central London by a startling 23% on average in a year, according to official figures.

The sharp fall in house values in Westminster is by far the biggest drop in the capital.

Some boroughs are still seeing modest rises.

So, it is a very mixed picture across the city.

People trying to get onto the property ladder and out of renting, or to move to a bigger home, are likely to welcome the drop in prices as they may need a smaller mortgage.

But for existing homeowners it could be a blow if their main asset falls in value, potentially threatening them with negative equity.

House prices have been falling in London for nine months in a row, according to the ONSPA Archive

The Office for National Statistics data showed the average house price in Westminster falling to £836,331 in May, down from £1,083,519 a year earlier, a drop of just over £247,000, or 22.8%.

The second biggest percentage fall was in Tower Hamlets, down 14.5%, or £76,000 over 12 months.

In Kensington and Chelsea, £150,000 has been wiped off the average house price, down 10.7%, though it still stands at £1,256,000.

In Hammersmith and Fulham, prices are down 10.9%, or £89,000.

Camden, Islington and Wandsworth have all seen drops of over 6%, or £53,000, £46,000 and £42,000 respectively.

House prices have fallen by more than 6% in Camden in a yearAFP via Getty Images

The falls for high value properties in central London may be at least partly due to the new “mansion tax” on homes worth £2 million and over which is set to come into force in 2028.

The capital’s property market could be further hit if Prime Minister Andy Burnham presses ahead with a new homes levy to replace council tax and stamp duty, which he has previously backed.

The major shake-up, based on the value of properties, could land London with an extra £7.5 billion property tax bill.

Borough	Average house price May 2026	% change in year to May 2026	£ change in year to May 2026
Barking and Dagenham	£361,000	Little change	Little change
Barnet	£591,000	-4.3	-26,000
Bexley	£409,000	+2.2	+9,000
Brent	£549,000	-3.3	-19,000
Bromley	£525,000	Little change	Little change
Camden	£806,000	-6.2	-53,000
Croydon	£397,000	Little change	Little change
Ealing	£569,000	-2.5	-15,000
Enfield	£469,000	Little change	Little change
Greenwich	£463,000	Little change	Little change
Hackney	£608,000	Little change	Little change
Hammersmith & Fulham	£729,000	-10.9	-89,000
Haringey	£634,000	+2.4	+15,000
Harrow	£530,000	Little change	Little change
Havering	£453,000	+2.8	+13,000
Hillingdon	£468,000	Little change	Little change
Hounslow	£501,000	-2.4	-13,000
Islington	£670,000	-6.4	-46,000
Kensington & Chelsea	£1,256,000	-10.7	-150,000
Kingston	£582,000	Little change	Little change
Lambeth	£545,000	-2.9	-16,000
Lewisham	£497,000	+2.3	+11,000
Merton	£597,000	-1.3	-8,000
Newham	£405,000	-1.4	-6,000
Redbridge	£496,000	+2.4	+12,000
Richmond	£789,000	-2.5	-20,000
Southwark	£579,000	Little change	Little change
Sutton	£445,000	Little change	Little change
Tower Hamlets	£444,000	-14.5	-76,000
Waltham Forest	£524,000	+3.1	+15,000
Wandsworth	£660,000	-6.1	-42,000
Westminster	£836,000	-22.8	-247,000
		Source: ONS

The biggest percentage increase was in Waltham Forest, up 3.1%, or £15,000.

There were rises of more than 2% in Bexley (£9,000), Haringey (£15,000), Havering (£13,000), Lewisham (£11,000) and Redbridge (£12,000).