{
  "id": 15880711,
  "title": "House prices ‘grind to a halt’ as London prime property hit",
  "url": "https://urgent.news/2026/10/21/house-prices-grind-to-a-halt-as-london-prime-property-hit",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-21T11:35:41.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/house-prices-grind-to-a-halt-as-london-prime-property-hit/"
  },
  "original_language": "en",
  "account": "In London's prime property market, house prices continued to decline in August, according to the Office for National Statistics. The market's confidence was suffering due to rising mortgage rates caused by the Iran war. Westminster, a sought-after area in the city, saw the average house price drop by 14.3% to £887,000 in August. Kensington and Chelsea experienced a 13.8% decrease in house prices to £1.2m in August, while Camden saw a 10.6% decline to £798,000.\n\nThe luxury property sector in London has been experiencing a downturn as prospective sellers face high stamp duty and council tax costs. Rising mortgage rates, up to 5.55% from previous levels, have forced sellers to lower prices to sell their homes. The UK's property market is currently in a \"wait-and-see mode,\" with mortgage approvals falling to the lowest level since 2023 and transaction numbers lower compared to this time last year, according to PwC economist Paige Tao.\n\nPaige Tao noted that falling consumer confidence has left the housing market in a state of uncertainty ahead of the Budget. The government's revived Help to Buy scheme is expected to provide some relief to the market, but economists believe that Labour must restore fiscal credibility at the Budget to alleviate concerns about rising borrowing costs. Tao explained that fiscal credibility matters because gilt yields directly impact mortgage finance costs.\n\nTom Bill, head of UK residential research at Knight Frank, stated that house price growth in the UK has \"ground to a halt\" this year, with declining mortgage approvals indicating further subdued activity later in the year. He added that the outlook for the UK housing market is heavily dependent on an overseas geopolitical risk, but price declines could reverse quickly if the Middle East conflict stabilizes or ends. As affordability constraints continue to tighten, it is unsurprising to see the most significant price impact in London.",
  "summary": "House prices in London’s most sought-after areas continued to plummet in August as confidence across the country’s housing market slumped on the back of rising mortgage rates brought on by the Iran war. Areas at the centre of the capital’s prime property market shed value in August as house prices across the capital slipped by [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}