Research by London lettings and estate agent, Benham and Reeves, has revealed that while the prime market is still struggling when it comes to house price growth, a return to normality has helped rejuvenate the price being paid for flats, with the average price for a flat across the prime market climbing by 11.8% annually.
The analysis of London’s prime market looks at the average price paid for both flats and houses in London’s most prestigious pockets of the property market and how they have performed over the last year.
The figures show that the average price paid for a house has fallen by -5.2% across the prime London market in the last year, now sitting at just over ÂŁ3.343m. This suggests that those in the market for a larger family home continue to look towards the peripherals of the capital and beyond in order to secure larger homes with a greater abundance of outdoor space.
However, with the capital returning to a full state of normality following the end of pandemic workplace restrictions, demand from professional and foreign buyers has once again started to climb.
In the last year, the average price paid for a flat across the prime London market has increased by 11.8% on average – with the average flat now commanding ÂŁ1.325m.
The area of St John’s Wood, Regents Park and Camden has enjoyed the largest rebound in property market values where flats are concerned, with the average price paid for an apartment increasing by 42.5% annually.
Knightsbridge and Belgravia is not only home to the highest current average price for an apartment at ÂŁ3.125m, but the area has also seen the second largest annual uplift in value at 41.5%.
The area of Kensington, Notting Hill and Holland Park ranks third, where the average price paid for a flat has climbed by 37.3% in the last year.
In fact, just three areas have seen the price paid for a prime London apartment fall over the last year – Mayfair and St James’s (-10.8%), Fitzrovia, Bloomsbury and Soho (-5.9%) and Midtown, City and City Fringe (-2%).
Director of Benham and Reeves, Marc von Grundherr, commented:
“It’s fair to say that the London market has been ticking over and while property values haven’t appreciated at the same manic rates as the rest of the UK, it’s certainly been a slow but steady return to health following the pandemic.
Central London, in particular, was hit hardest as a result of pandemic workplace restrictions and this had quite an impact on buyer appetites across the prime market.
However, we’ve seen a momentum shift in recent months across both prime neighbourhoods and central London as a whole, with an increased level of demand from professional and foreign buyers driving the market forward.
As a result, demand for good quality prime London apartments has been high and this has led to quite a substantial increase in the price being paid for them.”
Table shows the annual change in property values for flats across each prime London neighbourhood
Area
Outcodes
Ave price Flats – Q2 2021
Ave price Flats – Q2 2022
Change – Flats 2021 vs 2022
St John’s Wood, Regents Park & Camden
NW8, NW1
ÂŁ1,069,274
ÂŁ1,523,644
42.5%
Knightsbridge & Belgravia
SW1X, SW1W
ÂŁ2,208,667
ÂŁ3,124,533
41.5%
Kensington, Notting Hill & Holland Park
W8, W11, W14
ÂŁ1,167,963
ÂŁ1,603,394
37.3%
Hammersmith & Brook Green, Chiswick, North Kensington
W6, W4, W10
ÂŁ610,344
ÂŁ783,458
28.4%
Hampstead
NW3
ÂŁ997,698
ÂŁ1,264,067
26.7%
Chelsea
SW3, SW10
ÂŁ1,221,412
ÂŁ1,503,720
23.1%
Marylebone
W1H, W1U, W1G
ÂŁ1,641,389
ÂŁ1,952,583
19.0%
Kings Cross & Islington
N1, N5, N7
ÂŁ657,380
ÂŁ756,216
15.0%
Canary Wharf & Docklands
E14, E16
ÂŁ580,312
ÂŁ657,039
13.2%
Pimlico, Westminster & Victoria
SW1P, SW1V
ÂŁ912,006
ÂŁ1,018,466
11.7%
Richmond, Kew & Sheen
TW9, TW10, SW14
ÂŁ578,900
ÂŁ635,893
9.8%
Fulham & Earls Court
SW6, SW5
ÂŁ879,482
ÂŁ928,653
5.6%
Putney, Barnes & Wimbledon
SW13, SW15, SW19
ÂŁ566,038
ÂŁ587,206
3.7%
Vauxhall, Nine Elms, Borough & Kennington
SW8, SE1, SE11
ÂŁ769,400
ÂŁ796,428
3.5%
Bayswater & Maida Vale
W2, W9
ÂŁ1,014,543
ÂŁ1,036,628
2.2%
Battersea, Clapham & Wandsworth
SW11, SW4, SW18
ÂŁ637,022
ÂŁ639,251
0.3%
South Kensington
SW7
ÂŁ2,079,409
ÂŁ2,082,755
0.2%
Midtown, City & City Fringe
EC1A, EC2N, EC
ÂŁ801,710
ÂŁ785,871
-2.0%
Fitzrovia, Bloomsbury & Soho
W1W, W1T, WC1, WC2, W1F, W1D, W1B
ÂŁ1,833,705
ÂŁ1,724,719
-5.9%
Mayfair & St. James’s
W1K, W1J, SW1A
ÂŁ3,475,189
ÂŁ3,099,928
-10.8%
Average
ÂŁ1,185,092
ÂŁ1,325,223
11.8%
Table shows the annual change in property values for houses across each prime London neighbourhood
Area
Outcodes
Ave price Houses – Q2 2021
Ave price Houses – Q2 2022
Change – Houses 2021 vs 2022
St John’s Wood, Regents Park & Camden
NW8, NW1
ÂŁ3,985,017
ÂŁ4,666,969
17.1%
Knightsbridge & Belgravia
SW1X, SW1W
ÂŁ4,287,045
ÂŁ6,348,333
48.1%
Kensington, Notting Hill & Holland Park
W8, W11, W14
ÂŁ3,808,163
ÂŁ3,436,552
-9.8%
Hammersmith & Brook Green, Chiswick, North Kensington
W6, W4, W10
ÂŁ1,715,940
ÂŁ1,654,719
-3.6%
Hampstead
NW3
ÂŁ4,528,470
ÂŁ4,109,261
-9.3%
Chelsea
SW3, SW10
ÂŁ5,456,647
ÂŁ5,315,389
-2.6%
Marylebone
W1H, W1U, W1G
ÂŁ3,278,500
ÂŁ2,588,800
-21.0%
Kings Cross & Islington
N1, N5, N7
ÂŁ1,927,763
ÂŁ1,977,758
2.6%
Canary Wharf & Docklands
E14, E16
ÂŁ672,825
ÂŁ886,000
31.7%
Pimlico, Westminster & Victoria
SW1P, SW1V
ÂŁ2,417,420
ÂŁ2,904,501
20.1%
Richmond, Kew & Sheen
TW9, TW10, SW14
ÂŁ1,452,206
ÂŁ1,500,162
3.3%
Fulham & Earls Court
SW6, SW5
ÂŁ1,733,924
ÂŁ1,868,428
7.8%
Putney, Barnes & Wimbledon
SW13, SW15, SW19
ÂŁ1,196,633
ÂŁ1,669,062
39.5%
Vauxhall, Nine Elms, Borough & Kennington
SW8, SE1, SE11
ÂŁ1,055,500
ÂŁ1,083,333
2.6%
Bayswater & Maida Vale
W2, W9
ÂŁ2,991,727
ÂŁ3,020,553
1.0%
Battersea, Clapham & Wandsworth
SW11, SW4, SW18
ÂŁ1,465,333
ÂŁ1,337,139
-8.7%
South Kensington
SW7
ÂŁ4,446,176
ÂŁ4,877,846
9.7%
Midtown, City & City Fringe
EC1A, EC2N, EC
ÂŁ1,065,778
ÂŁ1,910,600
79.3%
Fitzrovia, Bloomsbury & Soho
W1W, W1T, WC1, WC2, W1F, W1D, W1B
ÂŁ1,570,000
ÂŁ1,300,000
-17.2%
Mayfair & St. James’s
W1K, W1J, SW1A
ÂŁ21,500,000
ÂŁ14,412,500
-33.0%
3527753.35
3343395.25
-5.2%
Prime London house and flat price data sourced from LonRes
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About the Author
Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 14 international offices.