Key Takeaways:
- A sophisticated cyberattack has disrupted local authority searches in Westminster City Council and the Royal Borough of Kensington and Chelsea, affecting thousands of home sales.
- The attack has forced the councils to activate emergency plans, with no timeline for resolution.
- Local authority searches are a crucial part of the homebuying process, providing information about a property and its surrounding area.
- The cyberattack is expected to impact the number of sales that can take place in the affected boroughs, resulting in significant revenue losses.
- The U.K. government estimates that cyberattacks cost the country £14.7 billion annually.
Introduction to the Cyberattack
A "sophisticated, criminal cyber attack" is threatening to hold up thousands of home sales in two of London’s richest boroughs, Westminster City Council and the Royal Borough of Kensington and Chelsea. The attack, which occurred in November, has disrupted the councils’ services, forcing them to activate emergency plans. As a result, the councils have been unable to process local authority searches, which are an essential part of the homebuying process. These searches provide information about a property and its surrounding area, including flood risk and new development.
The Importance of Local Authority Searches
Local authority searches are a critical component of the homebuying process, and their absence is causing significant delays. "If you’re buying with a mortgage, you’ll need a local authority search to secure the loan — you can’t proceed without them," said Nick Gregori, head of research at LonRes. Even cash buyers are advised to conduct local authority searches to avoid unexpected surprises later on. The U.K. has faced a spate of damaging cyberattacks in recent years, including attacks on Marks & Spencer Group Plc, the Co-op supermarket chain, and car manufacturer Jaguar Land Rover.
Response to the Cyberattack
The affected councils are working to restore their systems safely, with advice from the NCC Group, Met Police, and National Cyber Security Centre. "We know this is frustrating and will work as hard as possible to tackle the backlog once our systems are safely restored," said Elizabeth Campbell, leader of Kensington and Chelsea Council. A Westminster City Council spokesperson added that they are working round the clock to restore systems "safely" and anticipate resuming processing as soon as possible. The councils share some technology infrastructure, which may have contributed to the attack’s impact.
Impact on the London Property Market
The delays caused by the cyberattack come amid a broader slump in the London market, driven partly by hikes to the stamp duty transaction tax and the coming "mansion tax" on homes valued at more than £2 million. Residential sales above £5 million tumbled 18% in the first three quarters of 2025 from the same period a year earlier, according to broker Savills Plc. The affected boroughs, Westminster and Kensington and Chelsea, averaged a combined 350 home transactions per month between 2021 and 2024, according to an analysis of Land Registry data by LonRes. Kensington and Chelsea’s residential stamp duty bill totaled about £530 million ($728 million) in 2024-2025.
Long-term Consequences
The impact of the cyber attack on local authority searches "will undoubtedly impact the number of sales that can take place in the borough, and in turn the amount of revenue the borough will be able to generate," said LonRes’ Gregori. Even once the issue is resolved, there will be a significant backlog of pending searches, which will continue to delay the completion of home deals. "We have a government that wants to build 1.5 million homes but this is a proverbial spanner in two key boroughs of London," said Philip Eastwood, an agent at The Buying Solution. The U.K. government estimates that cyberattacks cost the country £14.7 billion annually, highlighting the need for increased cybersecurity measures to protect against such attacks.
Conclusion
In conclusion, the cyberattack on Westminster City Council and the Royal Borough of Kensington and Chelsea has significant implications for the London property market. The attack has disrupted local authority searches, causing delays and revenue losses for the affected boroughs. As the U.K. government continues to invest in cybersecurity measures, it is essential for individuals and organizations to prioritize cybersecurity to protect against such attacks. By understanding the importance of local authority searches and the impact of cyberattacks, we can work towards preventing similar incidents in the future and ensuring the smooth operation of the property market.
