Luxury London property developer collapses as housing market slows
A luxury London property developer has collapsed after running out of funds, as the capital’s prime housing sector faces growing pressure.
London Richmond Ltd, which describes itself as a “boutique” developer focusing on the “finer areas” of the capital, has appointed administrators, Morning Wire has learned.
In the latest sign that London’s prime property market is facing a prolonged slowdown, the firm’s administrators said its owners had run out of cash.
The developer’s now-deleted website boasted a portfolio of 20 luxury properties worth more than £30m, in up-market locations including West Hampstead, Wimbledon and South Kensington.
A spokesperson for BTG, the firm’s administrators, told Morning Wire: “Following financial difficulty due to issues with raising further funding, the director was left with no choice other than to place the company into administration.
“Our priority now is to complete our investigations to maximise the return to creditors in line with our statutory duty.
“We cannot comment further at this early stage in the appointment, however, we will keep creditors up to date with our findings as our investigation progresses.”
London Richmond had told prospective investors that it chose “to invest in London because of our love for this city and because the residential property market has consistently performed exceedingly well.”
Kensington house prices shed £100,000
The developer’s website had boasted 22 years of consecutive increases in the value of London’s property market, with the average house price growing from £206,000 to £846,000 between 2000 and 2022.
“London has long been considered a safe haven for real estate investments and the city’s unique characteristics ensure its enduring popularity and global appeal,” they said.
But London’s prime property market has faced significant headwinds in recent years, as the growing weight of stamp duty and flight of high-net-worth individuals slowed the market.
House prices in some of the capital’s richest boroughs have fallen by nearly £100,000 in just a month, according to Rightmove.
In research published on Monday, the property portal placed the average price of a home in Kensington and Chelsea at £1,552,970 in August – marking a drop of more than £95,000 on the month prior.
Earlier this year, Morning Wire revealed that prime property transactions in London fell to their lowest level in a decade in 2025.