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Demand for London’s high-end homes climbs in Q4

The latest property market analysis by London lettings and estate agent, Benham and Reeves, reveals which Prime London markets have experienced the strongest growth in demand during Q4 2021.

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 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

London’s Prime market has continued to go from strength to strength during the final stages of 2021. Not only did homebuyer demand climb 4% on a quarterly basis, but it was also 7.8% higher annually, as foreign buyers took advantage of easing travel restrictions to reinvigorate their portfolios.

The strongest quarterly growth has been seen in London’s South West Prime market, with demand climbing 23.7% in Clapham between the third and final quarters of 2021, while Putney (18.3%) and Barnes (11.7%) also saw some of the largest quarterly increases.

Putney has also seen the largest annual increase at 25.9%, with Wandsworth (21.2%) and Wimbledon (20.7%) also seeing some of the largest annual uplifts.

Super Prime Market – £10m+

Meanwhile, the Super Prime market has seen a more modest 0.2% increase since Q3 although demand at the very top tier of the London market is up 2.3% annually.

The best Super Prime performance both quarterly and annually has been recorded in Highgate where demand was non-existent in both the third quarter of 2021 and the final quarter of 2020. However, the final quarter of 2021 saw demand sit at 22.2%.

Knightsbridge (6.1%), and Victoria (2.6%) also enjoyed some of the largest quarterly increases, with Hampstead Garden Suburb (6.3%) and Mayfair (5%) seeing the largest annual increases behind Highgate.

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

“Despite the complications seen during December as a result of the Omicron variant, demand for London’s high end homes remained robust and demand has continued to climb both on a quarterly and annual basis.

However, the pandemic’s influence remains clear with demand at its highest across areas of the South West where there is a greater availability of larger homes and green space. However, even if the more central prime market we’re now seeing demand where there simply wasn’t any during the initial Covid-19 outbreak and this bodes very well for the year ahead.”

Data sourced from the major property portals during Q4, 2021, with demand based on the number of prime properties already sold subject to contract or under offer as a percentage of total properties listed.

Table shows Q4 demand alongside quarterly and annual demand changes for Prime property (£2m-£10m) in areas of London – Sorted by highest quarterly change in demand.
Area	Prime category	Q4 2021	Q Change	Annual change
Clapham	SW London	62.5%	23.7%	19.5%
Putney	SW London	55.4%	18.3%	25.9%
Barnes	SW London	56.0%	11.7%	9.1%
Battersea	SW London	20.3%	11.1%	5.2%
Canary Wharf	E London	11.1%	11.1%	8.7%
Hampstead Garden Suburb	NW London	18.2%	8.0%	7.3%
Islington	N London	43.7%	7.2%	14.8%
Holland Park	C London	30.3%	7.2%	12.4%
Chiswick	SW London	50.0%	6.1%	6.9%
Notting Hill	C London	30.2%	5.0%	13.3%
Belgravia	C London	19.6%	4.9%	9.7%
Victoria	C London	19.5%	4.5%	7.6%
Fitzrovia	C London	6.3%	3.9%	-0.8%
Fulham	SW London	28.6%	3.6%	13.3%
Mayfair	C London	8.0%	3.0%	-2.1%
Chelsea	C London	17.8%	2.9%	4.5%
Regents Park	C London	12.7%	2.7%	4.2%
Richmond	SW London	41.0%	2.3%	5.4%
Kensington	C London	18.7%	2.2%	4.8%
Marylebone	C London	5.5%	2.2%	1.1%
Pimlico	C London	15.6%	1.5%	6.4%
Wandsworth	SW London	55.2%	1.2%	21.2%
St John’s Wood	C London	12.0%	0.8%	-0.7%
Wimbledon	SW London	52.7%	-0.3%	20.7%
Knightsbridge	C London	13.8%	-1.4%	-1.6%
Maida Vale	C London	10.6%	-3.5%	-4.6%
Highgate	NW London	36.8%	-10.8%	9.4%
Wapping	E London	6.3%	-17.6%	-4.6%
Overall		27.1%	4.0%	7.8%

Table shows Q4 demand alongside quarterly and annual demand changes for Super Prime property (£10m+) in areas of London – Sorted by highest quarterly change in demand.
Area	Prime category	Q4 2021	Q Change	Annual change
Highgate	NW London	22.2%	22.2%	22.2%
Knightsbridge	C London	11.8%	6.1%	-2.7%
Victoria	C London	6.1%	2.6%	-0.2%
Mayfair	C London	5.0%	2.1%	5.0%
Belgravia	C London	5.4%	2.1%	0.0%
Kensington	C London	10.9%	0.7%	-2.1%
Fitzrovia	C London	0.0%	0.0%	0.0%
Maida Vale	C London	0.0%	0.0%	0.0%
Pimlico	C London	0.0%	0.0%	0.0%
Hampstead Garden Suburb	NW London	6.3%	0.0%	6.3%
Battersea	SW London	0.0%	0.0%	0.0%
Wimbledon	SW London	66.7%	0.0%	x
Chelsea	C London	7.5%	-0.4%	-0.1%
Marylebone	C London	0.0%	-2.2%	-4.7%
St John’s Wood	C London	0.0%	-4.3%	-2.9%
Holland Park	C London	6.3%	-8.0%	-3.2%
Regents Park	C London	0.0%	-8.3%	-2.9%
Notting Hill	C London	9.1%	-15.9%	-0.3%
Overall		8.3%	0.2%	2.3%

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 19 prominently located branches and 11 international offices.

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