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Demand is up across the prime London market (£2m+) both on a quarterly and annual basis, but the super prime threshold of £10m+ has seen a drop in buyer demand in the third quarter of 2022.

The PCL Homebuyer Demand Index by Benham and Reeves monitors demand for homes valued between £2-£10 million and £10 million and above based on the ratio of properties listed online that have already sold subject to contract or gone under offer. E.g, if 100 homes are listed and 50 are already sold, the demand score would be 50%.

Prime Market – £2m-£10m

LIS Show – MPU

Across the core prime market, buyer demand has edged up marginally in the third quarter of this year, increasing by 0.2% to 25%, building further on the positive growth seen in Q1, but more notable, increasing by 2.4% on an annual basis.

Barnes (67.5%), Chiswick (57.1%) and Wandsworth (53.1%) are home to the current highest demand for prime properties.

Barnes has also seen the largest spike in demand versus Q2, with a 16.7% increase.

Hampstead has seen the second largest increase at 7.9%, followed by Chiswick (6%). Islington has seen the largest quarterly decline with demand down -8.1% versus the second quarter of this year, along with Holland Park (-5.4%) and Maida Vale (-4.3%).

On an annual basis, Barnes again proves the most popular spot for prime property buyers, with demand up 23.2% versus last year. Canary Wharf has also seen one of the largest annual upticks (+17.2%), as has Battersea (14.9%).

Super Prime Market – £10m+

For the second quarter in a row, demand across the super prime market has fallen by 1%, down 1.9% when compared to this time last year.

Wimbledon is the hottest spot in London’s super prime market with current demand at 25%, followed by Highgate (16.7%) and Belgravia (13.8%).

Holland Park has seen the largest quarterly increase in demand at 4.8%, with Regents Park (+4.3%) and St John’s Wood (3.6%) also making the top three largest increases in quarterly buyer demand levels.

In terms of the largest annual boost to market activity, Highgate again tops the table with a +16.7% increase, followed by Belgravia (10.5%) and Victoria (8.6%).

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

“The London market may have failed to benefit from the same stamp duty spark that set the wider UK property market ablaze, but we have seen a consistent performance of late and signs of a slow but steady return to health.

This has been no different across the prime London market and a rejuvenated level of foreign interest has certainly helped to spearhead this increase in market activity.

However, the super prime market has yet to enjoy the same uplift and buyer demand remains down on both last quarter and this time last year.

However, a weak pound now means that many foreign buyers are benefitting from a dramatic boost in purchasing power and while this is bad news for the wider economy, it could see prime London sales start to climb over the coming months.”

Table shows current homebuyer demand and quarterly change for London homes priced £2m and above – sorted by highest current demand
Area Prime category Septemeber 2022 – Q3 Quarterly Change Annual Change
Barnes Prime SW London 67.5% 16.7% 23.2%
Chiswick Prime SW London 57.1% 6.0% 13.3%
Wandsworth Prime SW London 53.1% 5.4% -0.9%
Highgate Prime NW London 46.9% 3.5% -0.7%
Clapham Prime SW London 46.4% 2.5% 7.7%
Wimbledon Prime SW London 45.6% 2.0% -7.5%
Richmond Prime SW London 41.3% 3.3% 2.6%
Putney Prime SW London 34.3% -2.2% -2.8%
Islington Prime N London 33.9% -8.1% -2.6%
Fulham Prime SW London 28.0% -2.4% 3.0%
Battersea Prime SW London 24.1% 1.4% 14.9%
Hampstead Prime NW London 23.3% 7.9% 13.1%
Notting Hill Prime C London 21.5% 1.7% -3.7%
Victoria Prime C London 18.8% -2.9% 3.8%
Holland Park Prime C London 18.0% -5.4% -5.2%
Canary Wharf Prime E London 17.2% -2.8% 17.2%
Chelsea Prime C London 16.5% -0.3% 1.6%
Belgravia Prime C London 16.4% -3.9% 1.7%
Maida Vale Prime C London 15.4% -4.3% 1.3%
Kensington Prime C London 15.0% -3.1% -1.6%
Pimlico Prime C London 13.2% 0.2% -0.9%
Knightsbridge Prime C London 13.0% 1.3% -2.2%
Mayfair Prime C London 9.9% 2.3% 5.0%
St John’s Wood Prime C London 9.8% -1.5% -1.4%
Regents Park Prime C London 9.3% -2.5% -0.7%
Wapping Prime E London 8.7% -3.8% -15.1%
Marylebone Prime C London 6.0% -1.4% 2.8%
Fitzrovia Prime C London 2.8% -2.8% 0.4%
Overall Average 25.5% 0.2% 2.4%
Table shows current homebuyer demand and quarterly change for London homes priced £10m and above – sorted by highest current demand
Area Prime category Septemeber 2022 – Q3 Quarterly Change Annual Change
Wimbledon Prime SW London 25.0% 0.0% -41.7%
Highgate Prime NW London 16.7% 0.0% 16.7%
Belgravia Prime C London 13.8% 1.7% 10.5%
Victoria Prime C London 12.0% 0.9% 8.6%
Chelsea Prime C London 10.3% 1.0% 2.4%
Marylebone Prime C London 9.7% 0.3% 7.5%
Hampstead Prime NW London 7.7% -17.3% 1.4%
Kensington Prime C London 6.5% 1.4% -3.8%
Knightsbridge Prime C London 5.7% -4.5% 0.0%
Holland Park Prime C London 4.8% 4.8% -9.5%
Regents Park Prime C London 4.3% 4.3% -4.0%
St John’s Wood Prime C London 3.6% 3.6% -0.8%
Mayfair Prime C London 2.5% -0.1% -0.4%
Clapham Prime SW London 0.0% 0.0% N/A
Maida Vale Prime C London 0.0% 0.0% 0.0%
Pimlico Prime C London 0.0% 0.0% 0.0%
Putney Prime SW London 0.0% 0.0% 0.0%
Fulham Prime SW London 0.0% 0.0% 0.0%
Fitzrovia Prime C London 0.0% -25.0% 0.0%
Notting Hill Prime C London 0.0% 0.0% -25.0%
Overall Average 6.1% -1.1% -1.9%

Data sourced from the major property portals (Rightmove and Zoopla) during Q3, 2022, with demand based on the number of prime properties already sold subject to contract or under offer as a percentage of total properties listed.

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