Official figures from the UK’s Office for National Statistics show the average house price in Westminster fell from £1,145,000 in June 2025 to £854,000 in June 2026 — a drop of £291,000, or 25.4% — as central London property prices continue a sharp decline. The fall has accelerated through the year: Westminster’s annual price decline stood at 9.9% in March, 17.5% in April and 21.9% in May before reaching 25.4% in June. ONS data shows London house prices have now fallen for ten consecutive months, driven mainly by steep declines in Inner London, even as rents across the capital rose 3% year-on-year to July (up from 2.2% the previous month).
The decline follows the Labour government’s plan to impose a “mansion tax” on homes worth £2 million or more, which is expected to hit London and the South East hardest. New Prime Minister Andy Burnham has since signalled he may raise taxes further on higher earners to fund a rebalancing of the UK economy, and is planning to relocate hundreds of Whitehall jobs — including part of the Treasury — out of London. Tom Bill, head of UK residential research at Knight Frank, said prices in prime central London have fallen by a quarter over the past decade, driven primarily by higher rates of stamp duty, the ending of non-dom tax status, and reduced attractiveness of being a landlord, adding that “the uncertainty of a Government likely to look again at taxes on wealth and assets in the autumn Budget is adding to the current mood of hesitancy.”
Other London boroughs also recorded significant annual declines to June: Kensington and Chelsea fell 14.7% (£1,466,000 to £1,250,000), Hammersmith and Fulham fell 13.3% (£837,000 to £726,000), Tower Hamlets fell 13.1% (£526,000 to £457,000), Islington fell 8.1% (£733,000 to £673,000), Camden fell 7.1% (£897,000 to £833,000), and Wandsworth fell 5.2% (£717,000 to £680,000). Across London as a whole, average prices fell 2.5% in the year to June, compared with a 3.1% decline in the year to May. Nationally, UK house-price growth slowed to 2% in the year to June (from 3% the previous month), taking the average UK house price to £272,000.
