Kensington wards with more affordable new homes
A recent study by Bective has revealed how the Royal Borough of Kensington and Chelsea performed during the pandemic with cheaper and expensive wards in the area for buying a new property.
The estate agent based their study on the recent data by the ONS. Property experts analysed how each Kensington and Chelsea ward performed in the heights of the pandemic.
The average home in the Royal Borough of Kensington and Chelsea costs 174% more than the rest of the London property market. With the average house prices exceeding £1.3m, often only elite homebuyers can afford to own real estate here.
London property market lagged behind the rest of the country: from December 2019 to December 2020, house prices in the capital increased by only 3.5%. But Kensington and Chelsea saw property prices going up by 11% over the same 12 months.
However, it is little surprise that deeper analysis has revealed significant differences in property prices in the wards of Kensington and Chelsea.
The most expensive property in Kensington and Chelsea wards
There are 18 wards within Kensington and Chelsea. In Norland, property buyers purchase new homes at £2.8m on average, the most expensive houses in the borough.
The average house prices reached or exceeded the £2m threshold in the wards of Campden and The Royal Hospital in Kensington and Chelsea.
The most significant property price growth during the pandemic
Between December 2019 and December 2020, house prices in Notting Dale skyrocketed by 108%, from £512k to £1m. It was the 2nd ward with the most affordable homes in the borough, and its performance represented the highest price growth during the pandemic.
Only two other wards have seen the average house price growth exceed 50% from December 2019 to December 2020 – Norland and Dalgarno. By comparison, house prices in Abingdon became 9% cheaper, while home prices in Courtfield have not changed during the same period.
The most affordable property in Kensington and Chelsea
New homes in Kensington and Chelsea are not affordable, but there are wards within the borough with significantly lower house prices. The average property in Golborne costs £600k, the most affordable real estate in the borough.
Earl’s Court comes second with the average house prices standing at £800k. Lastly, buyers get their homes at £875k in Dalgarno.
Expert comments
Craig Tonkin at Bective highlights the resilience of the property prices in Kensington and Chelsea during the first stage of the pandemic, with the house price growth rate outperforming the other parts of the London property market in 2020.
Tonkin attributes the significant growth rate to the pre-pandemic demand and points out easing rates during the first half of 2021 (H1 2021) because of the travel restrictions affecting international property buyers. Property in Kensington and Chelsea became cheaper in 2021, but there are signs of a pivotal change as overseas buyers return to London.
Tonkin says that top-line price analysis only tells «part of the story». Local insights are crucial when choosing the best property. In Kensington and Chelsea alone, there are wards of different property prices. And it is common to see the differences because of the deeper analysis.