Research by London lettings and estate agent, Benham and Reeves, has revealed that while the prime market is still struggling when it comes to house price growth, a return to normality has helped rejuvenate the price being paid for flats, with the average price for a flat across the prime market climbing by 11.8% annually.
The analysis of London’s prime market looks at the average price paid for both flats and houses in London’s most prestigious pockets of the property market and how they have performed over the last year.
The figures show that the average price paid for a house has fallen by -5.2% across the prime London market in the last year, now sitting at just over £3.343m. This suggests that those in the market for a larger family home continue to look towards the peripherals of the capital and beyond in order to secure larger homes with a greater abundance of outdoor space.
However, with the capital returning to a full state of normality following the end of pandemic workplace restrictions, demand from professional and foreign buyers has once again started to climb.
In the last year, the average price paid for a flat across the prime London market has increased by 11.8% on average – with the average flat now commanding £1.325m.
The area of St John’s Wood, Regents Park and Camden has enjoyed the largest rebound in property market values where flats are concerned, with the average price paid for an apartment increasing by 42.5% annually.
Knightsbridge and Belgravia is not only home to the highest current average price for an apartment at £3.125m, but the area has also seen the second largest annual uplift in value at 41.5%.
The area of Kensington, Notting Hill and Holland Park ranks third, where the average price paid for a flat has climbed by 37.3% in the last year.
In fact, just three areas have seen the price paid for a prime London apartment fall over the last year – Mayfair and St James’s (-10.8%), Fitzrovia, Bloomsbury and Soho (-5.9%) and Midtown, City and City Fringe (-2%).
Director of Benham and Reeves, Marc von Grundherr, commented:
“It’s fair to say that the London market has been ticking over and while property values haven’t appreciated at the same manic rates as the rest of the UK, it’s certainly been a slow but steady return to health following the pandemic.
Central London, in particular, was hit hardest as a result of pandemic workplace restrictions and this had quite an impact on buyer appetites across the prime market.
However, we’ve seen a momentum shift in recent months across both prime neighbourhoods and central London as a whole, with an increased level of demand from professional and foreign buyers driving the market forward.
As a result, demand for good quality prime London apartments has been high and this has led to quite a substantial increase in the price being paid for them.”
Table shows the annual change in property values for flats across each prime London neighbourhood
Area
Outcodes
Ave price Flats – Q2 2021
Ave price Flats – Q2 2022
Change – Flats 2021 vs 2022
St John’s Wood, Regents Park & Camden
NW8, NW1
£1,069,274
£1,523,644
42.5%
Knightsbridge & Belgravia
SW1X, SW1W
£2,208,667
£3,124,533
41.5%
Kensington, Notting Hill & Holland Park
W8, W11, W14
£1,167,963
£1,603,394
37.3%
Hammersmith & Brook Green, Chiswick, North Kensington
W6, W4, W10
£610,344
£783,458
28.4%
Hampstead
NW3
£997,698
£1,264,067
26.7%
Chelsea
SW3, SW10
£1,221,412
£1,503,720
23.1%
Marylebone
W1H, W1U, W1G
£1,641,389
£1,952,583
19.0%
Kings Cross & Islington
N1, N5, N7
£657,380
£756,216
15.0%
Canary Wharf & Docklands
E14, E16
£580,312
£657,039
13.2%
Pimlico, Westminster & Victoria
SW1P, SW1V
£912,006
£1,018,466
11.7%
Richmond, Kew & Sheen
TW9, TW10, SW14
£578,900
£635,893
9.8%
Fulham & Earls Court
SW6, SW5
£879,482
£928,653
5.6%
Putney, Barnes & Wimbledon
SW13, SW15, SW19
£566,038
£587,206
3.7%
Vauxhall, Nine Elms, Borough & Kennington
SW8, SE1, SE11
£769,400
£796,428
3.5%
Bayswater & Maida Vale
W2, W9
£1,014,543
£1,036,628
2.2%
Battersea, Clapham & Wandsworth
SW11, SW4, SW18
£637,022
£639,251
0.3%
South Kensington
SW7
£2,079,409
£2,082,755
0.2%
Midtown, City & City Fringe
EC1A, EC2N, EC
£801,710
£785,871
-2.0%
Fitzrovia, Bloomsbury & Soho
W1W, W1T, WC1, WC2, W1F, W1D, W1B
£1,833,705
£1,724,719
-5.9%
Mayfair & St. James’s
W1K, W1J, SW1A
£3,475,189
£3,099,928
-10.8%
Average
£1,185,092
£1,325,223
11.8%
Table shows the annual change in property values for houses across each prime London neighbourhood
Area
Outcodes
Ave price Houses – Q2 2021
Ave price Houses – Q2 2022
Change – Houses 2021 vs 2022
St John’s Wood, Regents Park & Camden
NW8, NW1
£3,985,017
£4,666,969
17.1%
Knightsbridge & Belgravia
SW1X, SW1W
£4,287,045
£6,348,333
48.1%
Kensington, Notting Hill & Holland Park
W8, W11, W14
£3,808,163
£3,436,552
-9.8%
Hammersmith & Brook Green, Chiswick, North Kensington
W6, W4, W10
£1,715,940
£1,654,719
-3.6%
Hampstead
NW3
£4,528,470
£4,109,261
-9.3%
Chelsea
SW3, SW10
£5,456,647
£5,315,389
-2.6%
Marylebone
W1H, W1U, W1G
£3,278,500
£2,588,800
-21.0%
Kings Cross & Islington
N1, N5, N7
£1,927,763
£1,977,758
2.6%
Canary Wharf & Docklands
E14, E16
£672,825
£886,000
31.7%
Pimlico, Westminster & Victoria
SW1P, SW1V
£2,417,420
£2,904,501
20.1%
Richmond, Kew & Sheen
TW9, TW10, SW14
£1,452,206
£1,500,162
3.3%
Fulham & Earls Court
SW6, SW5
£1,733,924
£1,868,428
7.8%
Putney, Barnes & Wimbledon
SW13, SW15, SW19
£1,196,633
£1,669,062
39.5%
Vauxhall, Nine Elms, Borough & Kennington
SW8, SE1, SE11
£1,055,500
£1,083,333
2.6%
Bayswater & Maida Vale
W2, W9
£2,991,727
£3,020,553
1.0%
Battersea, Clapham & Wandsworth
SW11, SW4, SW18
£1,465,333
£1,337,139
-8.7%
South Kensington
SW7
£4,446,176
£4,877,846
9.7%
Midtown, City & City Fringe
EC1A, EC2N, EC
£1,065,778
£1,910,600
79.3%
Fitzrovia, Bloomsbury & Soho
W1W, W1T, WC1, WC2, W1F, W1D, W1B
£1,570,000
£1,300,000
-17.2%
Mayfair & St. James’s
W1K, W1J, SW1A
£21,500,000
£14,412,500
-33.0%
3527753.35
3343395.25
-5.2%
Prime London house and flat 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 19 prominently located branches and 11 international offices.