A Kensington mansion has become the latest luxury property in the capital to go up for sale in bankruptcy proceedings, as wealthy London homeowners face liquidating their assets to pay off debts.

According to Bloomberg News, the property on Queen’s Gate near Hyde Park is being sold by liquidators as part of bankruptcy proceedings, along with another house valued at about $520,000 (£412,000), for about $34 million (£27 million).

Insolvency trustees are generally appointed by creditors to collect outstanding payments and prepare for the liquidation of assets.

Bloomberg reported, citing court documents, that the two houses were subject to mortgages worth more than $22 million (£17.43 million).

The properties are reportedly registered to Emirati businessman Khalifa Bin Butti Omeir Al Muhairi, who filed for bankruptcy in Abu Dhabi in 2021.

He was previously deputy chairman of NMC Health, a hospital operator that was once listed in London and collapsed in 2020. The City of London regulator found that the operator had misled markets by understating its debt by as much as £3.2 billion.

A 20-bed Mayfair mansion and a £250million property in Regent’s Park once owned by the Saudi royal family were also reportedly put up for sale by liquidators last year.

Some of the capital’s most expensive villas are proving difficult to sell as the prime real estate market struggles with higher interest rates and billionaires increasingly turn to renting.

The expectation of several interest rate cuts by the Bank of England this year has provided some relief to the sector.

The liquidators are also reportedly investigating a house bought for £6.5 million in 2015 by Saeed Mohamed Butti Mohamed Al Qebaisi, the former NMC shareholder whose bankruptcy is linked to Al Muhairi’s, is bankrupt.

Al Muhairi and Al Qebaisi could not be reached for comment.