The latest market analysis from London lettings and estate agent, Benham and Reeves, reveals that buyer appetite for family homes is helping to drive the prime London market, a market segment that has otherwise seen property values underperform across the board over the last year.
Benham and Reeves has analysed prime London property prices by property type across 20 prime neighbourhoods to reveal which types of homes are most in demand amongst London’s high-end homebuyers based on house price performance over the last year.
Much like the wider UK market, the London market as a whole has struggled this year, as higher mortgage rates caused homebuyer activity to drop across the Capital. In fact, the average London house prices has fallen by -1.1% on an annual basis, climbing to a reduction of -1.6% across inner London specifically.
The analysis by Benham and Reeves shows that these cooling market conditions have also proved problematic for prime London sellers.
The average price paid for a three bedroom house across the prime market has fallen by -4%% year on year, with two-bed (-2.7%) and five-bed+ homes (-2.4%) also seeing a reduction. One-bed homes have remained largely static seeing an increase of just 0.2%.
At the same time, the price paid for prime London studio flats is down -1.2% annually, with one-bed flats also seeing a reduction of -3.5% year on year. Two-bed flats have also remained largely static annual house price growth is concerned, with growth of just 0.1%.
However, not every area of the prime London market is struggling and, in fact, two property types have seen strong rates of annual house price growth. The average price paid for a three-bed+ flat is up 1.4%, while four-bed houses have climbed by 3.7%, suggesting that strong demand remains from buyers in search of family suitable homes.
For those in search of a four-bed house in prime London, the neighbourhoods of Vauxhall, Nine Elms, Borough and Kennington offer the most affordable foot onto the prime London property ladder, with an average house price of ÂŁ965,071.
In contrast, a four-bed home in Knightsbridge and Belgravia comes in at an average of ÂŁ5.5m in the current market.
For those looking for a family suitable flat with three bedrooms or more, Canary Wharf and the Docklands boasts the most affordable price tag in the current prime market at an average of £687,333, while Mayfair and St James’s is home to the most expensive price tag at an average of £8.2m.
Director of Benham and Reeves, Marc von Grundherr, commented:
“Much like the rest of the UK, London house prices have largely underperformed this year and the current landscape is no different when it comes to the prime London market.
However, while annual price growth is down pretty much across the board, there remains a strong market for family suitable homes at the very top tier of the London market.
Our previous research has shown that following the end of pandemic travel restrictions, the number of foreign buyers entering the London market has climbed. Many of them are relocating their entire families in the process and this increased demand has no doubt been a contributing factor to the strong price performance of family suitable homes within the prime London market.
Given the allure that London has to overseas buyers, particularly those who will be educating their children in London, we don’t expect this trend to slow any time soon, and family-friendly homes in London’s prime markets will continue to be hot property, rising in value as a result.”
Table shows annual house price change in the whole of London, outer-London, and inner-London
Year
London
Outer-Londo
Inner-London
2022
ÂŁ543,572
ÂŁ493,921
ÂŁ635,343
2023
ÂŁ537,424
ÂŁ491,375
ÂŁ624,898
Annual Change %
-1.1%
-0.5%
-1.6%
Table shows annual price change (2022-2023) for houses in prime London neighbourhoods
Year
1 Bed House
2 Bed House
3 Bed House
4 Bed House
5+ Bed House
2019
ÂŁ504,145
ÂŁ487,389
ÂŁ740,722
ÂŁ1,079,341
ÂŁ2,441,290
2020
ÂŁ994,266
ÂŁ513,712
ÂŁ787,215
ÂŁ1,145,683
ÂŁ2,643,235
2021
ÂŁ718,504
ÂŁ773,049
ÂŁ1,032,552
ÂŁ1,448,499
ÂŁ3,176,798
2022
ÂŁ628,918
ÂŁ823,070
ÂŁ1,198,072
ÂŁ1,638,557
ÂŁ4,043,125
2023
ÂŁ629,970
ÂŁ800,994
ÂŁ1,149,808
ÂŁ1,699,500
ÂŁ3,947,822
Annual change ÂŁ
ÂŁ1,052
-ÂŁ22,076
-ÂŁ48,264
ÂŁ60,943
-ÂŁ95,303
Annual Change %
0.2%
-2.7%
-4.0%
3.7%
-2.4%
Table shows annual price change (2022-2023) for flats in prime London neighbourhoods
Year
Studio Flat
1 Bed Flat
2 Bed Flat
3+ Bed Flat
2019
ÂŁ368,407
ÂŁ528,190
ÂŁ808,099
ÂŁ1,922,099
2020
ÂŁ399,913
ÂŁ521,351
ÂŁ813,328
ÂŁ1,901,152
2021
ÂŁ369,937
ÂŁ542,256
ÂŁ807,834
ÂŁ1,948,955
2022
ÂŁ384,822
ÂŁ573,925
ÂŁ909,663
ÂŁ2,192,816
2023
ÂŁ380,020
ÂŁ554,061
ÂŁ910,524
ÂŁ2,223,840
Annual change ÂŁ
-ÂŁ4,802
-ÂŁ19,864
ÂŁ861
ÂŁ31,024
Annual Change %
-1.2%
-3.5%
0.1%
1.4%
Table shows most and least afforable areas of Prime London market for 4-bed houses, based on average price in 2023
Location
Area
Year
1 Bed House
2 Bed House
3 Bed House
4 Bed House
5+ Bed House
Knightsbridge & Belgravia
SW1X, SW1W
2023
N/A
ÂŁ2,106,888
ÂŁ4,344,958
ÂŁ5,474,500
ÂŁ16,838,636
Chelsea
SW3, SW10
2023
ÂŁ1,115,000
ÂŁ2,293,678
ÂŁ3,472,476
ÂŁ4,289,548
ÂŁ9,525,304
South Kensington
SW7
2023
N/A
N/A
ÂŁ3,495,726
ÂŁ4,265,000
ÂŁ11,291,250
Hampstead
NW3
2023
N/A
N/A
ÂŁ1,856,919
ÂŁ3,951,363
ÂŁ5,355,620
Marylebone & Medical Territory
W1H, W1U, W1G
2023
N/A
N/A
ÂŁ3,074,375
ÂŁ3,850,000
ÂŁ7,120,000
St John’s Wood, Regents Park & Camden
NW8, NW1
2023
N/A
ÂŁ1,145,000
ÂŁ1,715,156
ÂŁ3,830,179
ÂŁ6,145,437
Bayswater & Maida Vale
W2, W9
2023
N/A
ÂŁ1,329,200
ÂŁ2,610,588
ÂŁ3,781,607
ÂŁ6,192,045
Kensington, Notting Hill & Holland Park
W8, W11, W14
2023
N/A
ÂŁ2,017,555
ÂŁ2,930,333
ÂŁ3,566,981
ÂŁ9,526,703
Pimlico, Westminster & Victoria
SW1P, SW1V
2023
N/A
N/A
ÂŁ1,847,400
ÂŁ2,135,833
ÂŁ4,065,000
Fulham & Earls Court
SW6, SW5
2023
N/A
ÂŁ930,861
ÂŁ1,642,429
ÂŁ1,809,095
ÂŁ2,878,727
Kings Cross & Islington
N1, N5, N7
2023
N/A
ÂŁ840,885
ÂŁ1,232,921
ÂŁ1,554,500
ÂŁ2,041,979
Hammersmith & Brook Green, Chiswick, North Kensington
W6, W4, W10
2023
N/A
ÂŁ698,813
ÂŁ1,267,611
ÂŁ1,538,217
ÂŁ2,438,276
Richmond, Kew & Sheen
TW9, TW10, SW14
2023
N/A
N/A
ÂŁ1,219,000
ÂŁ1,490,727
ÂŁ2,252,375
Putney, Barnes & Wimbledon
SW13, SW15, SW19
2023
N/A
ÂŁ913,481
ÂŁ1,052,523
ÂŁ1,366,512
ÂŁ2,587,758
Battersea, Clapham & Wandsworth
SW11, SW4, SW18
2023
N/A
ÂŁ822,411
ÂŁ1,035,383
ÂŁ1,315,370
ÂŁ1,893,659
Vauxhall, Nine Elms, Borough & Kennington
SW8, SE1, SE11
2023
N/A
ÂŁ705,875
ÂŁ842,668
ÂŁ965,071
ÂŁ2,413,200
Greater London area
–
2023
ÂŁ629,970
ÂŁ800,994
ÂŁ1,149,808
ÂŁ1,699,500
ÂŁ3,947,822
Table shows most and least afforable areas of Prime London market for 3+ bed flats, based on average price in 2023
Location
Area
Year
Studio Flat
1 Bed Flat
2 Bed Flat
3+ Bed Flat
Mayfair & St. James’s
W1K, W1J, SW1A
2023
N/A
ÂŁ1,062,750
ÂŁ2,659,519
ÂŁ8,265,833
Knightsbridge & Belgravia
SW1X, SW1W
2023
ÂŁ331,333
ÂŁ935,340
ÂŁ2,011,442
ÂŁ4,991,016
Fitzrovia, Bloomsbury & Soho
W1W, W1T, WC1, WC2, W1F, W1D, W1B
2023
ÂŁ507,950
ÂŁ768,934
ÂŁ1,462,840
ÂŁ4,188,242
South Kensington
SW7
2023
N/A
ÂŁ983,706
ÂŁ1,571,448
ÂŁ3,940,657
Marylebone & Medical Territory
W1H, W1U, W1G
2023
ÂŁ425,100
ÂŁ960,681
ÂŁ1,729,242
ÂŁ3,304,806
Kensington, Notting Hill & Holland Park
W8, W11, W14
2023
ÂŁ535,625
ÂŁ711,675
ÂŁ1,176,006
ÂŁ3,028,983
Chelsea
SW3, SW10
2023
ÂŁ441,425
ÂŁ707,768
ÂŁ1,258,683
ÂŁ2,623,977
St John’s Wood, Regents Park & Camden
NW8, NW1
2023
ÂŁ310,823
ÂŁ587,469
ÂŁ946,914
ÂŁ2,164,854
Hampstead
NW3
2023
N/A
ÂŁ539,263
ÂŁ982,727
ÂŁ1,970,415
Bayswater & Maida Vale
W2, W9
2023
ÂŁ371,818
ÂŁ595,072
ÂŁ981,479
ÂŁ1,886,389
Pimlico, Westminster & Victoria
SW1P, SW1V
2023
ÂŁ374,083
ÂŁ546,264
ÂŁ876,828
ÂŁ1,440,452
Fulham & Earls Court
SW6, SW5
2023
ÂŁ383,800
ÂŁ500,122
ÂŁ810,484
ÂŁ1,358,639
Vauxhall, Nine Elms, Borough & Kennington
SW8, SE1, SE11
2023
ÂŁ420,000
ÂŁ457,520
ÂŁ693,850
ÂŁ1,352,552
Richmond, Kew & Sheen
TW9, TW10, SW14
2023
N/A
ÂŁ407,083
ÂŁ629,236
ÂŁ1,187,000
Battersea, Clapham & Wandsworth
SW11, SW4, SW18
2023
N/A
ÂŁ433,908
ÂŁ648,565
ÂŁ1,088,752
Hammersmith & Brook Green, Chiswick, North Kensington
W6, W4, W10
2023
ÂŁ275,000
ÂŁ475,671
ÂŁ665,100
ÂŁ1,038,645
Midtown, City & City Fringe
EC1A, EC2N, EC
2023
ÂŁ420,437
ÂŁ497,107
ÂŁ791,303
ÂŁ944,120
Putney, Barnes & Wimbledon
SW13, SW15, SW19
2023
N/A
ÂŁ383,491
ÂŁ574,896
ÂŁ927,225
Kings Cross & Islington
N1, N5, N7
2023
N/A
ÂŁ430,738
ÂŁ665,161
ÂŁ920,741
Canary Wharf & Docklands
E14, E16
2023
ÂŁ419,700
ÂŁ400,637
ÂŁ559,318
ÂŁ687,333
Greater London area
–
2023
ÂŁ380,020
ÂŁ554,061
ÂŁ910,524
ÂŁ2,223,840
Topline London Price data sourced from Gov-Land Registry
Prime London 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 15 international offices.