The latest research by London lettings and estate agent, Benham and Reeves, has found that demand for homes listed at £10m and above across London’s prime suburbs has tumbled to just 2%; with a number of areas seeing no demand for housing at all.
Benham and Reeves looked at prime London’s property hotspots and the demand for homes listed at £2-5m, £5-10m and £10m, to see how the current pandemic is impacting homeowner appetite for London’s priciest properties.
See the full data tables for each price threshold here.
The £2-5m market
At the lower end of the capital’s prime property market, demand remains fairly robust at 15% on average.
Richmond is the most in-demand of all prime London locations at this price bracket, with 40% of all homes listed still under offer or SSTC despite the spread of the Coronavirus.
Barnes (38%), Clapham (32%), Wimbledon (29%) and Chiswick (28%) are also amongst the most popular.
The £5-10m market
Moving up a price bracket, demand drops to 10%, however, there remain a number of areas where homebuyer activity remains robust.
Again, Barnes (56%), Wimbledon (33%) and Richmond (25%) remain popular, joined by Pimilcio (19%).
However, at this price bracket demand for housing is currently non-existent in Fitzrovia, Marylebone, Maida Vale, Regents Park, Canary Wharf, Battersea, Wandsworth and Chiswick.
The £10m+ market
It is the super-prime threshold that has seen homebuyer demand take the biggest hit.
With demand as a whole at just 2%, there are a total of 13 areas where demand sits at 0%, with a further seven areas where no homes are listed above this threshold.
Highgate is the most in-demand at 8%, along with Notting Hill (6%), Knightsbridge (5%), Mayfair (4%) and Chelsea (2%).
See the full data tables for each price threshold here.
Director of Benham and Reeves, Marc von Grundherr, commented:
“In times of crisis, the UK property market relies upon factors of necessity amongst home movers such as death, divorce and employment patterns. However, the present situation is preventing all but the most committed buyers from transacting and this is no different in the prime and super-prime echelons of the London market.
In theory, current conditions should suit the capital’s super-wealthy as this area of the market has always been about quality over quantity, private sales and the purchase of homes that lay empty and ready to be lived in.
But the spread of the Coronavirus is having a big impact on buyer sentiment and this is remarkably evident in areas where there is currently no buyer demand at all; a phenomenon rarely seen in a market as popular as London.
Prime work hubs such as Battersea and Canary Wharf have seen offices close and companies tighten their belts with employment, with demand dropping off as a result.
The economic consequences of the current pandemic are causing even the wealthiest of buyers to put a second London home purchase on ice, both due to the financial commitment and the fear of an almost immediate drop in values should the market crash.
In addition to this, restrictions around living have had a big impact on the traditionally popular areas of Belgravia, Fitzrovia, Holland Park and other areas within the inner city.
What we are seeing is a consistent level of demand in more peripheral areas with the sought after features of a lockdown purchase such as Richmond, Barnes and Clapham.
These areas generally allow for more space both within the property and its grounds and more bricks and mortar for your money. They are home to a greater abundance of nearby green space in the immediate vicinity and are less densely populated than the majority of inner London areas. All of which are features that are currently resonating with high-end buyers, until the dust has settled at the very least.”
Prime London property demand for properties listed between £2m-£5m
Area
Prime category
Demand
Belgravia
Prime C London
12%
Chelsea
Prime C London
13%
Fitzrovia
Prime C London
3%
Holland Park
Prime C London
16%
Kensington
Prime C London
16%
Knightsbridge
Prime C London
15%
Marylebone
Prime C London
4%
Mayfair
Prime C London
6%
Maida Vale
Prime C London
6%
Notting Hill
Prime C London
18%
Pimlico
Prime C London
5%
Regents Park
Prime C London
5%
St John’s Wood
Prime C London
6%
Victoria
Prime C London
12%
Hampstead Garden Suburb
Prime NW London
12%
Highgate
Prime NW London
17%
Islington
Prime N London
24%
Wapping
Prime E London
0%
Canary Wharf
Prime E London
3%
Battersea
Prime SW London
19%
Clapham
Prime SW London
32%
Wandsworth
Prime SW London
19%
Wimbledon
Prime SW London
29%
Putney
Prime SW London
12%
Fulham
Prime SW London
19%
Barnes
Prime SW London
38%
Chiswick
Prime SW London
28%
Richmond
Prime SW London
40%
Average
15%
Prime London property demand for properties listed between £5m-£10m
Area
Prime category
Demand
Barnes
Prime SW London
56%
Wimbledon
Prime SW London
33%
Richmond
Prime SW London
25%
Pimlico
Prime C London
19%
Putney
Prime SW London
19%
Knightsbridge
Prime C London
12%
Belgravia
Prime C London
12%
Kensington
Prime C London
11%
Victoria
Prime C London
11%
Chelsea
Prime C London
11%
Holland Park
Prime C London
10%
Fulham
Prime SW London
10%
Notting Hill
Prime C London
9%
Clapham
Prime SW London
8%
Mayfair
Prime C London
7%
Highgate
Prime NW London
6%
Hampstead Garden Suburb
Prime NW London
4%
St John’s Wood
Prime C London
4%
Islington
Prime N London
3%
Fitzrovia
Prime C London
0%
Marylebone
Prime C London
0%
Maida Vale
Prime C London
0%
Regents Park
Prime C London
0%
Canary Wharf
Prime E London
0%
Battersea
Prime SW London
0%
Wandsworth
Prime SW London
0%
Chiswick
Prime SW London
0%
Wapping
Prime E London
X
Average
10%
Super-prime London property demand for properties listed at £10m and over
Area
Prime category
Demand
Highgate
Prime NW London
8%
Notting Hill
Prime C London
6%
Knightsbridge
Prime C London
5%
Mayfair
Prime C London
4%
Chelsea
Prime C London
2%
Kensington
Prime C London
2%
St John’s Wood
Prime C London
2%
Marylebone
Prime C London
2%
Belgravia
Prime C London
0%
Fitzrovia
Prime C London
0%
Holland Park
Prime C London
0%
Maida Vale
Prime C London
0%
Pimlico
Prime C London
0%
Regents Park
Prime C London
0%
Victoria
Prime C London
0%
Hampstead Garden Suburb
Prime NW London
0%
Islington
Prime N London
0%
Battersea
Prime SW London
0%
Wimbledon
Prime SW London
0%
Fulham
Prime SW London
0%
Richmond
Prime SW London
0%
Wapping
Prime E London
x
Canary Wharf
Prime E London
x
Clapham
Prime SW London
x
Wandsworth
Prime SW London
x
Putney
Prime SW London
x
Barnes
Prime SW London
x
Chiswick
Prime SW London
x
Average
2%
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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.