The Telegraph has published a compelling article today (summarised below) that echoes what we at North Fox have been advising our clients for the past two years: when it comes to smart property investment, the old assumptions about London no longer hold true. Values are not increasing, affordability in the capital is at breaking point and many middle class professionals are heading North.
Once the pinnacle of property prestige, streets like Egerton Crescent in Kensington symbolised the heights of London’s housing boom. But that boom has waned. Today, London’s housing market faces falling prices, cautious buyers, and sellers forced to offer discounts. In Kensington and Chelsea, prices have dropped 15% over the past year, and over 80% of prime properties are selling below asking.
A decade of stagnating wages, rising interest rates, and post-Brexit uncertainty has pushed Londoners north. Many young professionals are choosing cities like Liverpool and Newcastle, where homes cost a fraction of those in the capital, and mortgage repayments consume far less of their income.
High costs, especially stamp duty and reduced tax perks for overseas buyers and landlords, have made central London less attractive for investment. At the same time, fewer buyers and increased regulation are prompting landlords to exit the market, reducing rental availability and pushing up rents.
Affordability has become the central crisis. London house prices average over nine times local incomes, compared to less than six nationally. Professionals vital to the city—teachers, nurses, police—are increasingly unable to live where they work. This is reshaping the city, with school enrolments falling and communities changing.
While there are signs of renewed interest on the fringes and hopes of recovery, most experts agree that London’s overheated property market has settled into a “new normal” of slower growth, tougher affordability, and greater realism—perhaps for good.
