Inner London Flat Prices Fall 8.1% Year-on-Year, Steepest Drop Since 2009

Inner London flat prices fell 8.1% in the year to August, the steepest decline since 2009 and roughly five times the 1.6% national drop, according to Telegraph analysis of Land Registry data. The average sale price across London's 15 inner boroughs fell by £48,968 since June 2025, erasing more than 12 years of growth, to £522,200 — the lowest since July 2015. Owners have lost about £50,000 on average since last summer, while those who bought at the September 2022 peak have seen values fall £71,935. In Westminster, flat prices dropped 15% year-on-year, double the 7.4% decline in 2009. Analysts attribute the slump to elevated mortgage rates, stamp duty costs and reduced buy-to-let demand following tax relief cuts and the renters' rights bill. Bank of England data show the average two-year fixed mortgage rate rose from 3.98% in March to 4.69% in August. Stamp duty on an average inner London flat reached £16,110, nearly 12 times the £1,382 national average. The figures precede Wednesday's Budget, expected to include a Help to Buy-style scheme for first-time buyers.