A cyber intrusion identified on November 24, 2025 has disrupted essential local authority services in two central London boroughs, freezing parts of the property market and delaying administrative functions.
The Royal Borough of Kensington and Chelsea and Westminster City Council have both been unable to operate several core systems since the breach was detected. Although Kensington and Chelsea is internationally associated with high-value homes, luxury retail outlets and tree-lined residential streets, routine civic operations in the borough are currently under strain.
A notice published on the Kensington and Chelsea council website states that disruption is expected to continue for several more weeks and that restoring all services may take months.
According to HM Land Registry figures, approximately 2,000 property transactions occur annually within Kensington and Chelsea. Many of those transactions are now impacted because the councils cannot conduct local authority searches. These searches are mandatory checks that examine planning history, land charges, infrastructure proposals and regulatory constraints linked to a property.
Nick Gregori, Head of Research at property data platform LonRes, explained that local authority searches are fundamental to the conveyancing process. Buyers relying on mortgage financing cannot secure loans without completed searches. Even purchasers using cash are advised to obtain them to ensure proper due diligence.
Jo Eccles, founder of buying agency Eccord, said two of her clients purchasing in Westminster have had to obtain indemnity insurance because official searches are not expected to resume until April due to accumulated delays. She noted that private banks are sometimes willing to proceed with indemnity-backed transactions, whereas retail lenders are generally less accommodating.
Robert Green, Head of Sales at John D Wood & Co. in Chelsea Green, stated that indemnity policies do not eliminate the need for careful investigation. Solicitors are attempting to reconstruct due diligence by reviewing historical documentation held by sellers or from previous acquisition files. Buyers without access to private lending or substantial liquidity are finding transactions extremely difficult to complete.
Planning services have also stalled. Architect Emily Ceraudo has two projects paused: one involving listed building consent in South Kensington and another concerning a mansard roof extension in Mayfair. She said clients initially struggled to accept that the entire planning system could remain offline for this duration, prompting her to share official correspondence confirming the cause of delay. Councils have indicated that some applications may be processed offline, but no revised timeframe has been provided.
There are reports of contractors reconsidering site activity and some clients contemplating proceeding with works in anticipation of retrospective approval.
Housing benefit payments were also interrupted. Laurence Turner, who rents a studio flat in Chelsea to an elderly tenant with medical needs, said he only became aware of the issue after two missed payments. He emphasized that he has no contractual relationship with the council and that his tenant had consistently paid rent early for five years. His letting agent, Maskells, contacted the council for clarification. Payments due in mid-December and mid-January were missed, leaving £2,870 outstanding before funds were eventually received.
Turner observed that council service charges were skipped once in mid-December but resumed in mid-January, whereas housing benefit was missed twice. He acknowledged that municipal financial systems are complex and that he may not see the full administrative context.
Neither borough has provided a definitive restoration date. Kensington and Chelsea stated that systems are being reactivated gradually under guidance from NCC Group, the Metropolitan Police and the National Cyber Security Centre. Property searches are expected to return as soon as possible, with a limited search service available before full restoration.
Council Leader Cllr Elizabeth Campbell described the incident as a n intricate criminal cyber attack. She said prior investment in digital, data and technology infrastructure, including updated cyber defence systems, helped reduce overall damage. She confirmed that the planning system is undergoing checks, that new planning applications cannot progress beyond validation, and that local land charge searches remain unavailable. She added that £10 million in housing benefits has been issued since the incident and that recovery work continues with specialist partners to ensure systems are restored safely and with strengthened resilience.
