London house prices hindering relocation

London The gap in house prices between London’s boroughs has widened sharply over the past three years, polarising wealth and restricting relocation within the UK capital. House prices in London’s traditional wealthy enclaves, such as Kensington and Chelsea, have risen steeply since 2009. However, property prices in many of the city’s less well-heeled boroughs have flatlined or fallen during the same period, in some cases significantly underperforming the market.

The gap, revealed using data compiled by estate agent Knight Frank, highlights the tiering effect that demand from overseas buyers is having on London’s property market.

In Westminster, property prices rose 32 per cent in the three years to April, taking the average house price in the central London borough to £752,785 (Dh4.3 million). In contrast, house prices in less-sought-after Barking and Dagenham slumped 0.5 per cent over the same time to £218,597. Overall, UK house prices grew 8.2 per cent over the three years.

“The wide spread in performance within London reflects the fact that the outer boroughs generally share much in common with the wider UK market; it is the globalised housing market in central London which has created the chasm in performance,” said Liam Bailey, head of research at Knight Frank.