The average price for a parking space in London has surged to £130,000 over the past year, marking a dramatic 70% increase from the previous year’s average of £76,250. This steep rise reflects growing pressure on limited parking facilities across the capital, with some boroughs experiencing extraordinary price inflation that defies nationwide property trends.
Islington stands out as the most expensive borough for parking, with spaces averaging £760,000, representing a 41% year-on-year increase. Tower Hamlets follows with typical spaces selling for approximately £600,000, after a remarkable 146% price jump. These premium boroughs highlight the extreme variance across London, where parking space values can fluctuate considerably based on location. Research conducted by Jefferies London analyzed transactions from June 2024 to May 2025 using Land Registry Price Paid data.
Not all areas have seen increases, however. Richmond upon Thames experienced an 85% decline to £45,000 per space, while Southwark fell by 91% to just £25,000. Ealing saw the most dramatic decrease, with prices plummeting 99% to approximately £5,000 per space.
Central London continues to command premium rates, with Westminster spaces averaging around £110,000 and Kensington & Chelsea spaces typically selling for £80,000. Individual prime locations command even higher prices, with Knightsbridge spaces reportedly selling for £250,000 and Kensington spots ranging between £90,000 and £165,000. The scarcity of parking in these areas is particularly acute, with Kensington and Chelsea having only 35,640 parking spaces available for its 155,798 residents.
The extreme price disparities reflect both genuine market pressures and statistical anomalies. Land Registry data shows that in boroughs with few transactions, a single high-value sale can notably skew averages.
Analysts note that scarcity of designated private parking in dense areas drives willingness to pay premium prices. Local policy changes also influence market conditions.
Recent parking charge reviews and the discontinuation of vehicle discounts in some boroughs have altered the comparative appeal of private parking versus permit options. The upcoming changes on July 1, 2025 will include the discontinuation of discounts for Band A vehicles in certain boroughs, potentially driving more buyers toward private parking options. For wealthy buyers in prime locations, paying up to £300,000 for a secure parking spot represents not just convenience but a tangible asset whose value approaches that of small apartments in other UK cities.
