Prime central London: Kensington

This year, Kensington has seen a clear divide between demand for houses and apartments. Many buyers now see freehold houses with outdoor space as offering better long-term value than similarly priced leasehold apartments. Higher service charges are also influencing this shift. This trend is largely driven by UK-based individuals, couples, and families looking for full-time homes, rather than an international purchaser who is looking for a part-time bolthole. As a result, homes priced between £3 million and £5 million in pretty pockets like Hillgate Village are seeing strong interest. At the top end, those ‘best in class’ enclaves (Scarsdale Villas, for example) continue to show resilience.

Despite this demand, there is little urgency around transactions. Buyers are extremely thorough and diligent, taking time to scrutinise surveys and reports before committing. As a result, deals are now taking two to three months rather than four to six weeks. Looking ahead, much will hinge on the Autumn Budget. However, continued activity is expected up to the £6 million mark with a sprinkling of larger deals.

The lettings market is in the process of recalibrating, too. Although there is a lack of stock available, due to landlords attempting to sell off their investment portfolios, tenants in the core market (paying between £600 to £1,500 per week) do not feel any pressure to rush either. They are treating the process as a painstaking negotiation to get the best price, rather than a hell-for-leather race. In addition, they are taking a methodical approach, often viewing properties across several boroughs before committing. This, in turn, means that those landlords who are undeterred by the Renters’ Rights Bill are adjusting their expectations on what rent can realistically be achieved.

At the premium end, some families are opting to rent rather than buy, prioritising flexibility and proximity to well-respected schools with minimal disruption to their family lifestyle. However, many tenants at this level are requesting shorter break clauses due to global uncertainty. Kensington has some wonderful examples of new build developments that have availability for lettings and do trigger a degree of competition, including Holland Green, One Kensington Gardens, Holland Park Villas, and Lancer Square.

As the market recalibrates, Kensington’s enduring appeal lies in its ability to offer both stability and style. Whether buying or renting, the emphasis is clear: thoughtful decisions, timeless locations.

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