The latest Prime Central London Buyer Demand Index by London lettings and estate agent, Benham and Reeves, has found that demand is up across the prime London market (£2m+) both on a quarterly and annual basis, but the super prime threshold of £10m+ has seen a drop in buyer demand in the third quarter of 2022.
The PCL Homebuyer Demand Index by Benham and Reeves monitors demand for homes valued between £2-£10 million and £10 million and above based on the ratio of properties listed online that have already sold subject to contract or gone under offer. E.g, if 100 homes are listed and 50 are already sold, the demand score would be 50%.
Prime Market – £2m-£10m
Across the core prime market, buyer demand has edged up marginally in the third quarter of this year, increasing by 0.2% to 25%, building further on the positive growth seen in Q1, but more notable, increasing by 2.4% on an annual basis.
Barnes (67.5%), Chiswick (57.1%) and Wandsworth (53.1%) are home to the current highest demand for prime properties.
Barnes has also seen the largest spike in demand versus Q2, with a 16.7% increase. Hampstead has seen the second largest increase at 7.9%, followed by Chiswick (6%). Islington has seen the largest quarterly decline with demand down -8.1% versus the second quarter of this year, along with Holland Park (-5.4%) and Maida Vale (-4.3%).
On an annual basis, Barnes again proves the most popular spot for prime property buyers, with demand up 23.2% versus last year. Canary Wharf has also seen one of the largest annual upticks (+17.2%), as has Battersea (14.9%).
Super Prime Market – £10m+
For the second quarter in a row, demand across the super prime market has fallen by 1%, down 1.9% when compared to this time last year.
Wimbledon is the hottest spot in London’s super prime market with current demand at 25%, followed by Highgate (16.7%) and Belgravia (13.8%).
Holland Park has seen the largest quarterly increase in demand at 4.8%, with Regents Park (+4.3%) and St John’s Wood (3.6%) also making the top three largest increases in quarterly buyer demand levels.
In terms of the largest annual boost to market activity, Highgate again tops the table with a +16.7% increase, followed by Belgravia (10.5%) and Victoria (8.6%).
Director of Benham and Reeves, Marc von Grundherr, commented:
“The London market may have failed to benefit from the same stamp duty spark that set the wider UK property market ablaze, but we have seen a consistent performance of late and signs of a slow but steady return to health.
This has been no different across the prime London market and a rejuvenated level of foreign interest has certainly helped to spearhead this increase in market activity.
However, the super prime market has yet to enjoy the same uplift and buyer demand remains down on both last quarter and this time last year. However, a weak pound now means that many foreign buyers are benefitting from a dramatic boost in purchasing power and while this is bad news for the wider economy, it could see prime London sales start to climb over the coming months.”
Prime – £2m+
Table shows current homebuyer demand and quarterly change for London homes priced £2m and above – sorted by highest current demand
Area
Prime category
Septemeber 2022 – Q3
Quarterly Change
Annual Change
Barnes
Prime SW London
67.5%
16.7%
23.2%
Chiswick
Prime SW London
57.1%
6.0%
13.3%
Wandsworth
Prime SW London
53.1%
5.4%
-0.9%
Highgate
Prime NW London
46.9%
3.5%
-0.7%
Clapham
Prime SW London
46.4%
2.5%
7.7%
Wimbledon
Prime SW London
45.6%
2.0%
-7.5%
Richmond
Prime SW London
41.3%
3.3%
2.6%
Putney
Prime SW London
34.3%
-2.2%
-2.8%
Islington
Prime N London
33.9%
-8.1%
-2.6%
Fulham
Prime SW London
28.0%
-2.4%
3.0%
Battersea
Prime SW London
24.1%
1.4%
14.9%
Hampstead
Prime NW London
23.3%
7.9%
13.1%
Notting Hill
Prime C London
21.5%
1.7%
-3.7%
Victoria
Prime C London
18.8%
-2.9%
3.8%
Holland Park
Prime C London
18.0%
-5.4%
-5.2%
Canary Wharf
Prime E London
17.2%
-2.8%
17.2%
Chelsea
Prime C London
16.5%
-0.3%
1.6%
Belgravia
Prime C London
16.4%
-3.9%
1.7%
Maida Vale
Prime C London
15.4%
-4.3%
1.3%
Kensington
Prime C London
15.0%
-3.1%
-1.6%
Pimlico
Prime C London
13.2%
0.2%
-0.9%
Knightsbridge
Prime C London
13.0%
1.3%
-2.2%
Mayfair
Prime C London
9.9%
2.3%
5.0%
St John’s Wood
Prime C London
9.8%
-1.5%
-1.4%
Regents Park
Prime C London
9.3%
-2.5%
-0.7%
Wapping
Prime E London
8.7%
-3.8%
-15.1%
Marylebone
Prime C London
6.0%
-1.4%
2.8%
Fitzrovia
Prime C London
2.8%
-2.8%
0.4%
Overall Average
25.5%
0.2%
2.4%
Super Prime – £10m+
Table shows current homebuyer demand and quarterly change for London homes priced £10m and above – sorted by highest current demand
Area
Prime category
Septemeber 2022 – Q3
Quarterly Change
Annual Change
Wimbledon
Prime SW London
25.0%
0.0%
-41.7%
Highgate
Prime NW London
16.7%
0.0%
16.7%
Belgravia
Prime C London
13.8%
1.7%
10.5%
Victoria
Prime C London
12.0%
0.9%
8.6%
Chelsea
Prime C London
10.3%
1.0%
2.4%
Marylebone
Prime C London
9.7%
0.3%
7.5%
Hampstead
Prime NW London
7.7%
-17.3%
1.4%
Kensington
Prime C London
6.5%
1.4%
-3.8%
Knightsbridge
Prime C London
5.7%
-4.5%
0.0%
Holland Park
Prime C London
4.8%
4.8%
-9.5%
Regents Park
Prime C London
4.3%
4.3%
-4.0%
St John’s Wood
Prime C London
3.6%
3.6%
-0.8%
Mayfair
Prime C London
2.5%
-0.1%
-0.4%
Clapham
Prime SW London
0.0%
0.0%
N/A
Maida Vale
Prime C London
0.0%
0.0%
0.0%
Pimlico
Prime C London
0.0%
0.0%
0.0%
Putney
Prime SW London
0.0%
0.0%
0.0%
Fulham
Prime SW London
0.0%
0.0%
0.0%
Fitzrovia
Prime C London
0.0%
-25.0%
0.0%
Notting Hill
Prime C London
0.0%
0.0%
-25.0%
Overall Average
6.1%
-1.1%
-1.9%
Data sourced from the major property portals (Rightmove and Zoopla) during Q3, 2022, with demand based on the number of prime properties already sold subject to contract or under offer as a percentage of total properties listed.
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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.