Housing prices in prime London areas are falling

Houses and flats in Notting Hill, Hampstead and a number of other prestigious areas of the city have become more affordable and less attractive to investors.

Falling oil prices, rising stamp duty and fears over Britain's possible exit from the EU have caused property prices to fall in some of the city's most prestigious areas.

Square metres have fallen in price the most in Kensington High Street in West London. In the first quarter of this year, the average property price here was €2.3 million, down 11.8% from the same period in 2015. Average prices in Notting Hill fell by 10% year-on-year to €1.9 million, in Hampstead by 9.2% (around €1.28 million), and in South Kensington by 5.8% (€2.42 million). Prime real estate in this prestigious area is no longer necessarily profitable. However, square metres continue to rise in price in other parts of London. In the first quarter of 2016, property prices in the city, excluding the most prestigious areas, rose by 2% year-on-year to around €680,000.