London sees steep house price drop as property market shows mixed results

House prices in London take a dramatic dip as the property market continues to struggle.

According to research by Moverly, house prices in the capital in the last year alone have fallen by a staggering -21.1% — a loss of almost £202,616.

Despite the drop in house prices in London, the average UK house price has increased by +2.8%.

House prices fall over the last 12 months

Research by Moverly reveals that 27% of local authority districts in the capital have seen the average house price fall over the past 12 months.

London’s Kensington & Chelsea has seen the second-worst decline of -15.8%, followed by Rutland in the East Midlands (-8.1%), the Western Isles in Scotland (-6.8%), Castle Point in the East of England (-6.8%), and Torridge in the South West (-6.7%).

Haunted by an underperforming housing market

Gemma Young, Moverly chief executive, says many homeowners continue to struggle still with the property market.

She said:“After a difficult few years for the UK property market, it’s great to see that top-level data suggests a return to health is well underway.

“However, such topline statistics rarely tell the full story and when breaking the market down on a more granular level, it’s clear that homeowners across the nation are still being haunted by an underperforming housing market.

“Whilst there is widespread optimism that the market will continue to improve as we head into 2025, there’s no guarantee that house prices will recover across the board, or at the same rate for that matter.”