There’s mixed news for investors with properties in prime areas of London - although overall it appears demand to purchase property is largely unaffected by the interest rate woes hurting much of the rest of the market.
The latest Prime Central London Buyer Demand Index by lettings and estate agency Benham and Reeves has found that demand is up across the prime London market (£2m-plus) both on a quarterly and annual basis, but the super prime threshold of £10m-plus has seen a drop in buyer demand in the third quarter of 2022.
The agency monitors demand for homes valued between £2m and £10m, and £10m and above, based on the ratio of properties listed online that have already sold subject to contract or gone under offer. So for example if 100 homes are listed and 50 are already sold, the demand score would be 50 per cent.
Across the core prime market priced from £2m to £10m buyer demand has edged up marginally in the third quarter of this year, increasing by 0.2 per cent to 25 per cent - more notable, increasing 2.4 per cent on an annual basis.
Barnes, Chiswick and Wandsworth are home to the current highest demand for prime properties. Islington has seen the largest quarterly decline with demand down 8.1 per cent, with Holland Park and Maida Vale also showing significant falls.
For the second quarter in a row, demand across the super prime market of properties priced at £10m or above has fallen by one per cent - on an annual basis, prices are down 1.9 per cent.
Wimbledon is the hottest spot in London’s super prime market followed by Highgate and Belgravia.
Benham and Reeves director Marc von Grundherr says: “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."
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.jpg)
%20(002).png)
.png)
Join the conversation
Jump to latest comment and add your reply
Love Wimbledon shame it's full of Wombles
Absolutely right, George. You would have thought that they would have done something about that by now.
I love Wombles - they were recycling long before it was fashionable to do so!
Please login to comment