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
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 traditional 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 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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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.