hamburger close
Home Press releasesProperty marketDemand from London’s wealthiest buyers dips in Q1

Demand from London’s wealthiest buyers dips in Q1

demand from london wealthiest buyers dips

The latest Prime Central London Buyer Demand Index by London lettings and estate agent, Benham and Reeves, has found that demand is down across the prime London market (£2m-£10m) both on a quarterly and annual basis, while a quarterly decline in the super-prime market (£10m+) has not been enough to disrupt a year of positive annual growth.

The Prime Central London Demand Index by Benham and Reeves monitors demand for London’s most expensive properties based on the level of market activity seen between the £2m to £10m threshold and the super prime market of £10m+.

Prime Market – £2m-£10m

Across the core prime market, buyer demand has seen a slight decline in the first quarter of 2023, falling by 0.6% to sit at 20.8% currently. This cool in market activity also results in an annual decline of -3.9% since this time last year.

Islington (45.9%), Richmond (43.8%), and Barnes (43.6%) are home to the current highest demand for prime properties.

In terms of quarterly change, however, Wapping has seen the strongest growth at 14.4%, followed by Islington (8.0%), Richmond (7.4%), and Barnes (5.8%).

The largest quarterly decline in demand for prime London property has been recorded in Chiswick where it has dropped by -14.2% in the past three months, followed by Highgate (-10.9%), Wimbledon (-10.2%), and Fulham (-5.7%).

On an annual basis, Hampstead has seen its popularity grow the most with a Prime demand increase of 7.4%. In Islington, demand is up 6.4%, while Wapping (4.5%), Richmond (1%), Chelsea (0.9%), Regents Park (0.9%), and Barnes (0.2%) have also recorded annual demand growth.

The largest annual declines have been recorded in Clapham (-26.7%), Wandsworth (-19%), and Highgate (-11.6%).

Super Prime Market – £10m+

London’s super-prime market has also recorded a quarterly decrease in demand in Q1 2023, falling by -2.8% to sit at 7.5% currently. However, on an annual basis demand has still increased by 4.9%.

Pimlico is the hottest spot in London’s super prime market with current demand at 33.3% followed by Holland Park (20%), Maida Vale (12.5%), and Marylebone (10.5%).

The largest quarterly increase has been recorded in Holland Park where demand is up 13.8%. This is followed by Kensington (6.2%), Regents Park (3%), and Knighstbridge (1.7%).

The biggest quarterly drops have come in, Pimlico (-33.3%), and Fitzrovia (-20%) and Victoria (-11.8%)

As for annual demand change, the best performing areas of London are Pimlico (33.3%), Belgravia (21.9%), and Holland Park (13.8%)

The worst annual drops have come in Wimbledon (-25%), Notting Hill (-10%), and Hampstead (-8.3%).

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

“Homebuyer activity across the prime London market had shown signs of improvement throughout much of last year, with momentum building, driven by the return of foreign interest in the capital’s traditionally prime neighbourhoods.

However, it’s clear that the current uncertainty of the UK’s economic landscape is enough to unsettle even the wealthiest of buyers and this has led to a reduction in demand since the final quarter of last year.

We expect this to be a temporary dip due to a wait and see mentality rather than a downward curve and we’re also seeing substantial demand for rental homes at present by those wishing to make their move without committing to a purchase.

We currently have an average of 32 applicants for every rental property at the moment which is some 21% more than we did last year.”

Table shows demand for prime London property (£2m-£10m) in Q1 2023, alongside quarterly and annual change
Area Prime category Q1 2023 Q Change Annual change
Wapping Prime E London 23.5% 14.4% 4.5%
Islington Prime N London 45.9% 8.0% 6.4%
Richmond Prime SW London 43.8% 7.4% 1.0%
Barnes Prime SW London 43.6% 5.8% 0.2%
Clapham Prime SW London 42.2% 4.4% -26.7%
Canary Wharf Prime E London 8.0% 3.8% -8.7%
Notting Hill Prime C London 20.3% 2.2% 0.0%
Mayfair Prime C London 7.8% 1.2% 0.0%
Knightsbridge Prime C London 12.7% 0.8% -0.6%
Chelsea Prime C London 16.3% 0.6% 0.9%
Hampstead Prime NW London 18.5% 0.4% 7.4%
Fitzrovia Prime C London 4.0% 0.2% -3.5%
Kensington Prime C London 14.4% 0.2% -1.1%
Battersea Prime SW London 18.6% 0.1% -10.8%
Holland Park Prime C London 20.7% -0.1% -3.9%
Maida Vale Prime C London 13.3% -0.3% -0.5%
Marylebone Prime C London 6.3% -0.8% -1.0%
Belgravia Prime C London 14.9% -1.8% -4.6%
Putney Prime SW London 27.8% -2.7% -7.6%
Victoria Prime C London 14.4% -3.2% -4.1%
Wandsworth Prime SW London 22.4% -3.9% -19.0%
Pimlico Prime C London 9.3% -4.1% -4.2%
Regents Park Prime C London 9.7% -4.6% 0.9%
St John’s Wood Prime C London 10.4% -4.8% -0.2%
Fulham Prime SW London 15.6% -5.7% -10.4%
Wimbledon Prime SW London 34.7% -10.2% -2.7%
Highgate Prime NW London 25.0% -10.9% -11.6%
Chiswick Prime SW London 37.5% -14.2% -10.3%
Overall average 20.8% -0.6% -3.9%
Table shows demand for super prime London property (£10m+) in Q1 2023, alongside quarterly and annual change
Area Prime category Q1 2023 Q Change Annual change
Holland Park Prime C London 20.0% 13.8% 13.8%
Kensington Prime C London 9.7% 6.2% 5.3%
Regents Park Prime C London 7.1% 3.0% 7.1%
Knightsbridge Prime C London 6.7% 1.7% -1.9%
Maida Vale Prime C London 12.5% 1.4% 12.5%
Notting Hill Prime C London 10.0% 0.9% -10.0%
St John’s Wood Prime C London 9.4% 0.0% 5.0%
Highgate Prime NW London 0.0% 0.0% 0.0%
Battersea Prime SW London 0.0% 0.0% 0.0%
Fulham Prime SW London 0.0% 0.0% 0.0%
Hampstead Prime NW London 0.0% 0.0% -8.3%
Mayfair Prime C London 3.3% -0.8% 3.3%
Chelsea Prime C London 8.3% -1.2% -1.2%
Marylebone Prime C London 10.5% -1.2% 10.5%
Belgravia Prime C London 0.0% -8.8% 21.9%
Victoria Prime C London 3.6% -11.8% -2.9%
Fitzrovia Prime C London 0.0% -20.0% 0.0%
Pimlico Prime C London 33.3% -33.3% 33.3%
Overall average 7.5% -2.8% 4.9%

Prime London Demand Q1 2023
Sales demand data sourced from Rightmove and Zoopla
Demand based on the number of total listings in each neighbourhood that have already been sold subject to contract or marked as under offer.


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.