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The latest Prime London Property Demand Index by London lettings and estate agent, Benham and Reeves, has found that demand for high-end homes at £2m and above has crept up by +1% during the first quarter of the year, while there has been a +2% increase at the £10m+ price point.

The index by Benham and Reeves analysed the ratio of homes listed for sale to those sold across the prime London market to identify where high-end homebuyer demand is at its highest, as well as how this demand has changed quarter to quarter.

£2m+ Market Look

National Landlord Investment Show – MPU

Biggest Quarterly Changes

Homebuyer demand across the PCL market has crept up by +1% to 20% during the first quarter of this year. This has partly been driven by the continued trend for bigger homes and more green space with the largest quarterly increases coming via Wimbledon (+12%), Putney (+7%) and Richmond (+6%).

However, demand is also on the up in other more central neighbourhoods of the prime London market. Notting Hill (+6%), Pimlico (+5%), Fulham (+5%) and Holland Park (4%) have also seen some of the largest uplifts in demand.

Highest Current Demand

When looking at the areas with the highest levels of current demand, the trend of homebuyers looking outwards remains clear.

Wimbledon is the most in-demand area with buyer demand at 44% overall, with Barnes (42%), Richmond (41%), Chiswick (39%), Putney (37%), Clapham (34%), Highgate (31%), Islington (29%) and Wandsworth (25%) also ranking high.

Again, Notting Hill ranks as the most in-demand area of the prime central market with demand at 22%, along with Holland Park. Fulham (20%), Kensington and Maida Vale (16%) also rank high.

£10m+ Market Look

Overall, demand for London homes at £10m and above has climbed +2% between the first quarter of this year and the final quarter of 2020, now at 8% currently.

Holland Park (+17%) and Notting Hill (+13%) again rank amongst the best performing areas in the super-prime market, with both seeing some of the largest quarterly uplifts in demand during the first quarter of the year.

Both areas are also home to the highest levels of demand at present with Holland Park seeing 26% of all homes at £10m and above being taken, dropping to 22% in Notting Hill.

Chelsea (14%), Victoria (13%) and Kensington (9%) are also amongst the most in-demand areas of London’s super-prime market.

Director of Benham and Reeves, Marc von Grundherr, commented:

“We’re slowly but surely seeing momentum grow across the prime London market and a further uplift in homebuyer demand during the first quarter is certainly a positive sign for the year ahead.”

“Of course, this increase in health has been boosted to an extent by the capital’s less traditional prime areas such as Richmond, Barnes, Putney, Clapham and Highgate.”

“These locations offer larger homes but more importantly, both the homes available and the wider areas boast a greater abundance of green space, which has fast become a must-have for high-end homebuyers.”

“This is a trend that has been brought about due to lockdown restrictions and is no doubt here to stay, if only for the short to medium term.”

“However, what’s telling across the super-prime market, at least, is that demand for high-end homes remains very focused on prestigious market locations such as Notting Hill, Holland Park, Chelsea, Kensington and Victoria.”

“Despite the introduction of a stamp duty surcharge for foreign buyers, we expect this demand to continue to build as London reopens and we return to some form of normality.”

Table shows what percentage of homes listed for sale were/are sold subject to contract or under offer and the change between each quarter (Source: Rightmove and Zoopla).

Table shows homebuyer demand for homes at £2m and above across prime London locations, as well as the quarterly change
Area Prime category Q4, 2020 Q1, 2021 Change (%)
Wimbledon Prime SW London 32% 44% 12%
Barnes Prime SW London 47% 42% -5%
Richmond Prime SW London 36% 41% 6%
Chiswick Prime SW London 43% 39% -4%
Putney Prime SW London 29% 37% 7%
Clapham Prime SW London 43% 34% -9%
Highgate Prime NW London 27% 31% 3%
Islington Prime N London 29% 29% 0%
Wandsworth Prime SW London 34% 25% -9%
Notting Hill Prime C London 17% 22% 6%
Holland Park Prime C London 18% 22% 4%
Fulham Prime SW London 15% 20% 5%
Kensington Prime C London 14% 16% 3%
Maida Vale Prime C London 15% 16% 1%
Chelsea Prime C London 13% 14% 1%
Pimlico Prime C London 9% 14% 5%
Battersea Prime SW London 15% 14% -1%
Knightsbridge Prime C London 15% 14% -2%
Victoria Prime C London 12% 12% 1%
Belgravia Prime C London 10% 12% 2%
St John?s Wood Prime C London 13% 11% -2%
Wapping Prime E London 11% 9% -2%
Mayfair Prime C London 10% 9% -2%
Hampstead Garden Suburb Prime NW London 11% 7% -4%
Regents Park Prime C London 9% 6% -2%
Canary Wharf Prime E London 2% 5% 3%
Marylebone Prime C London 4% 5% 1%
Fitzrovia Prime C London 7% 5% -2%
Average 19% 20% 1%
Table shows homebuyer demand for homes at £10m and above across prime London locations, as well as the quarterly change
Area Prime category Q4, 2020 Q1, 2021 Change (%)
Holland Park Prime C London 9% 26% 17%
Notting Hill Prime C London 9% 22% 13%
Chelsea Prime C London 13% 14% 1%
Victoria Prime C London 8% 13% 5%
Kensington Prime C London 14% 9% -6%
Belgravia Prime C London 6% 8% 1%
St John?s Wood Prime C London 6% 8% 2%
Fitzrovia Prime C London 5% 7% 1%
Mayfair Prime C London 3% 4% 1%
Maida Vale Prime C London 0% 0% 0%
Pimlico Prime C London 0% 0% 0%
Hampstead Garden Suburb Prime NW London 0% 0% 0%
Highgate Prime NW London 0% 0% 0%
Battersea Prime SW London 0% 0% 0%
Fulham Prime SW London 0% 0% 0%
Regents Park Prime C London 0% 0% 0%
Marylebone Prime C London 0% 0% 0%
Knightsbridge Prime C London 3% 0% -3%
Average 5% 0% -5%
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