London flat prices tumble as affordability bites

London flat prices are falling sharply, particularly in expensive central boroughs, as higher mortgage rates, stamp duty and service charges constrain affordability. ONS figures show average apartment prices dropped 25.4% annually in Westminster and 20.4% in the City, while Kensington & Chelsea fell 15.3%. Across London, flat prices declined 4.7% to £431,036. Analysts said first-time buyers have been disproportionately affected, while demand for larger homes and an abundance of apartments for sale have added pressure. Sellers are increasingly accepting lower prices as borrowing costs remain elevated and inner-London property values continue their long-term stagnation. 

The Times (01/09/2026)