London estate agents are seeing a ‘two track’ market with house prices falling in the most expensive areas, it has been reported.

More than half of the Capital’s boroughs experienced a drop in property prices, analysis of figures from the Office for National Statistics (ONS) shows.

And the dip has hit the wealthiest council locations the worst, with 18 recording a price drop.

18% fall

London as a whole saw a 2.4% reduction in prices in the year to October, according to the ONS, with the UK experiencing a 1.4% increase.

The City of London had a 18% fall, Kensington and Chelsea 16.5%, with a similar drop in Westminster, CityAM reports.

In Kensington and Chelsea the average price dropped to £1.19 million, the lowest in more than a decade, down from its highest level of £1.6 million.

All-time high

Meanwhile, Barking and Dagenham, Waltham Forest, Bromley, Lewisham and Havering all recorded house prices up.

In Havering, Waltham Forest, and Lewisham average house prices reached an all-time high.

Two-speed

Tom Bill, Head of UK Residential Research at Knight Frank, said London was a “two-speed market”, with Stamp Duty higher on more expensive properties.

In September, Knight Frank revealed prices fell by a fifth over the last decade in Prime Central London.

And the value of properties sold in London’s six most desirable boroughs dropped by up to 60% in the previous 12 months, according to analysis by Jefferies London released in June.

Of the six prime neighbourhoods analysed, just two boasted an average sold price above £1 million.

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