The latest research by London lettings and estate agent, Benham and Reeves, has revealed that when it comes to the current London property landscape, the £1m+ market is not only home to the highest level of market activity with respect to for sale stock listed, but it’s also home the strongest levels of homebuyer demand.
Benham and Reeves analysed current property listings across the capital at each price threshold, before looking at which price threshold currently boasts the greatest degree of for sale stock, as well as the highest levels of buyer demand, based on the proportion of total stock that has already been marked as under offer or sold subject to contract.
Previous research by Benham and Reeves found that so far this year, 3,716 properties have sold for £1m or more across London, equating to 21.1% of total sales completed across the capital.
Their latest research further highlights the strength of the £1m+ market across the capital at present, with this level of the market accounting for both the highest levels of buyer demand and available for sale stock.
London stock availability by price threshold
The research shows that currently there are some 19,116 properties listed for sale across London at £1m or more. This accounts for 19% of total market stock within the capital, by far the highest level of stock of all price bands.
What’s more, these 19,116 £1m+ homes account for 85% of all stock listed at £1m or more across the entire UK.
In fact, just the £400,000 to £499,999 price bracket comes close in this respect, accounting for 16% of total market stock, followed by homes listed for £300,000 to £399,999 at 14%.
Unsurprisingly, homes listed for less than £100,000 across London make up just 1% of current for sale stock.
Buy demand by price threshold
But it’s not just a healthy level of for sale stock where the £1m+ market is outperforming the rest. Currently, 77% of all homes listed for sale at £1m or more across London have either been marked as under offer or sold subject to contract, by far the highest demand levels of all price thresholds.
In contrast, the lowest demand is currently for homes priced at £400,000 to £499,999, with just 59% of available listings already marked as under offer or sold subject to contract.
What’s more, buyer demand is stronger across the UK as a whole at every price bracket, apart from homes priced at £800,000 or more, demonstrating that the top end of the market is currently driving London’s property market forwards.
Director of Benham and Reeves, Marc von Grundherr, commented:
“When it comes to current market performance, it’s clear that London is being driven by the one million pound plus market at present, as not only is demand highest at this price threshold, but so too is the level of stock making its way to the market.
It’s no different in the rental market either, with homes commanding £1,000 per week an upwards seeing a very high level of tenant demand at present.
That’s not to say that there isn’t a good level of stock at other price thresholds, or demand for that matter. However, the lower tiers of the market are certainly more susceptible to the uncertainty of the current economic landscape, as well as the increased cost of buying driven by increasing mortgage rates in recent times.”
|Table shows current buyer demand levels at each price threshold in London, the UK as a whole and the difference between the two|
|Sales price threshold||London Buyer Demand||UK Buyer Demand||London vs UK|
|£0 – £99,999||68%||74%||-6%|
|£100,000 – £199,999||67%||63%||4%|
|£200,000 – £299,999||61%||64%||-2%|
|£300,000 – £399,999||60%||68%||-8%|
|£400,000 – £499,999||59%||68%||-9%|
|£500,000 – £599,999||63%||68%||-5%|
|£600,000 – £699,999||65%||68%||-3%|
|£700,000 – £799,999||68%||68%||0%|
|£800,000 – £899,999||69%||68%||1%|
|£900,000 – £999,999||71%||66%||5%|
|Table shows current for sale stock at each price threshold in London, the UK and what London stock equates to as a proportion of total UK stock|
|Sales price threshold||London For Sale Stock||Price threshold as proportion of total London market||UK For Sale Stock||London as a proportion of UK|
|£0 – £99,999||537||1%||1,653||32%|
|£100,000 – £199,999||2,531||3%||4,893||52%|
|£200,000 – £299,999||8,364||8%||20,897||40%|
|£300,000 – £399,999||14,419||14%||35,017||41%|
|£400,000 – £499,999||16,535||16%||30,507||54%|
|£500,000 – £599,999||13,348||13%||22,113||60%|
|£600,000 – £699,999||10,121||10%||16,787||60%|
|£700,000 – £799,999||7,244||7%||11,905||61%|
|£800,000 – £899,999||5,172||5%||8,827||59%|
|£900,000 – £999,999||3,648||4%||5,830||63%|
Data sourced from Zoopla, Rightmove and On the Market and correct as of 19/10/23
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