London flats are now valued below 2017 levels on a per square metre basis, according to analysis of more than one million property transactions in the capital.
Data compiled by video property listings platform Gaffon.com shows flats are currently priced at £6,639 per square metre, compared to £6,787 nine years ago. The analysis merged sales values from the Land Registry with Energy Performance Certificate (EPC) data.
In contrast, terraced houses in London increased 40% in value during the same period, highlighting a divergence between property types in the capital’s market.
Regional variations
Gaffon matched 1,091,977 registered sales to their energy certificates and calculated prices per square metre across London boroughs. The data reveals significant regional variations in performance.
Kensington & Chelsea experienced the steepest decline, with values falling 26% from a 2018 peak. Waltham Forest is the only borough currently at a per square metre record, showing a 2% increase.
Barking and Dagenham, Redbridge and Bromley recorded increases driven by terraced and semi-detached houses, which rose between 20% and 32% since 2019. Flats in these areas increased more modestly, between 1% and 5%. New-build properties accounted for 3% or less of total sales, according to Gaffon.
Inflation impact
The analysis suggests nominal London flat prices have remained largely static since 2022, with inflation eroding real values. With approximately 20% inflation since 2022, real values have fallen substantially, the data indicates.
The findings come as London property financing activity continues across various sectors, though the flat market appears to face distinct challenges compared to houses. The divergence between property types may influence investment strategies, particularly as government schemes target first-time buyers who typically enter the market through flats.
The data provides a detailed picture of London’s property market performance over nearly a decade, with clear differences emerging between boroughs and property types.
