The London property bust: How property costs within the capital have plunged in wake of Rachel Reeves’ price range – how a lot is YOURS value?
- Do YOU have a story? Email [email protected]
Property prices in London have plunged in the wake of Rachel Reeves‘ budget, new analysis has revealed.
Homeowners in the capital have suffered the largest loss across the nation with almost 2 per cent – worth £10,541 – knocked off house prices from September to October this year, according to estate agents Purplebricks.
Values slipped by -1.9 per cent in London, October’s House Price Index revealed, meaning the average home in the city now costs £547,468. The annual plunge was even steeper at 2.4 per cent.
Values fell in 19 of the capital’s 33 boroughs, with the three biggest losers suffering six-figure hits over the 12 months to October this year.
Homes in Kensington and Chelsea shed £56,975 from September to October, and an eye-watering £236,342 over the year. Despite this, properties still average a staggering £1,194,726.
The City of London saw the biggest monthly price plunge of £68,103 over the month. Homes in the capital’s famous financial district now average £607,399.
Westminster was the third London borough to suffer a six-figure annual loss. Homes in the UK’s political heartland lost £170,763 over the year and £30,352 in a month – leaving the average home worth £889,935.
Beyond the capital, homes in the South West suffered a 0.6 per cent reduction from September to October this year, pricing the average property in the region at £302,526.
Homes in Kensington and Chelsea (pictured) shed £56,975 from September to October, and £236,342 over the year
This apartment in Whiteheads Grove, Chelsea, is now going for £1,500,000
The three-bedroom, two-bathroom apartment is set within a red brick development in the heart of Chelsea
The property boasts a light interior and is a short walk from public transport links
Westminster (pictured) was the third London borough to suffer a six-figure annual loss. Homes lost £170,763 over the year and £30,352 in a month
This apartment in Erasmus Street, Westminster, is now on the market for £700,000
The two-bedroom apartment is ‘refurbished to a high standard’ and features period features
Scotland saw the same 0.6 per cent wiped off property prices over the month, pricing the average home at £191,825, according to the House Price Index.
While property struggled in the South, it was a different story in the North East, where homes rose in price by 1.3 per cent in a month, meaning the average property is now worth £163,153.
Across the UK, Wales was the second strongest performer despite a 1.1 per cent rise over the last month. The average cost of a Welsh home is now £210,657.
Despite monthly price plunges in many parts of the UK, house prices increased by 1.7 per cent – or £5,000 – over the 12 months to October this year, making most UK properties worth £270,000.
The biggest winners over the year were homeowners on the remote Orkney Islands, where prices rose by £37,386, leaving the average property on the remote Scottish islands worth £242,065.
The Vale of White Horse, in Oxfordshire, saw an average rise of more than £30,000 over the year, with prices in the district rising by £33,537, meaning the average home is worth £410,221.
Uttlesford in Essex also saw a price increase of £32,263, with homes now averaging £492,803.
The average home in Westminster is now £889,935. Homes there have lost £170,763 over the year
The Vale of White Horse, in Oxfordshire, saw an average rise of more than £30,000 over the year. This house is now worth £315,000
The property features a large garden and modern patio doors
A house (pictured) in Horsham, West Sussex, is now worth £650,000
The house features a light interior and traditional wooden floors
House prices in England saw an annual price rise of 1.4 per cent, making the average property worth £291,515. Wales had a 1.5 per cent increase and homes now stand at £210,657 on average.
In Scotland, there was a 0.6 per cent monthly loss but an annual rise of 3.3 per cent, meaning the average Scottish home now costs around £191,825.
Tom Evans, Sales Director at Purplebricks Estate Agency, said: ‘While these monthly falls are not the outcome homeowners will have wanted to see, a softening in house prices at this stage of the year is not unusual.
‘December is traditionally a period when activity slows, and this year many buyers and sellers have been holding back, awaiting clarity on future housing policy and taxation plans from the Government heading into 2026.
‘Concerns around higher-value properties over £2million and second homes may be contributing to that hesitation.
‘There is concern that the mansion tax may stifle movement at the top of the chains but it’s important to recognise that overall, 2025 has been a resilient year for the housing market.
‘We remain confident the property market will regain momentum in the new year.’
