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UK House Prices Plummet 11.3% Amid Wealth Shock

11/22/2025

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Story summary
  • UK house prices fell 11.3% in Kensington and Chelsea this year.
  • National prices have stagnated for two decades.
  • The Labour government's new property taxes and a mansion tax may depress values.
  • UK household wealth declined from £5.5 trillion in late 2021 to £4.2–£4.4 trillion.
  • The wealth shock, driven by gilt yields and mortgage rates, has led households to save more and spend less.