The latest Prime London Demand Index by long-standing lettings and estate agent, Benham and Reeves, has shown that homebuyer interest in London’s high-end market has increased 5.8% annually for homes listed at £2m and above and 1.8% across the £10m+ market.
The index by Benham and Reeves analyses the ratio of homes listed as sold subject to contract or under offer as a percentage of all homes for sale across the prime London market, highlighting where high-end homebuyer demand is at its highest, as well as how this demand has changed.
£2m+ Market
While demand across the prime London market has remained largely static between Q2 and Q3 of this year (-0.7%), on an annual basis, there has been a 5.8% increase for homes across London’s high end market.
Although lockdown restrictions have all but disappeared, it’s clear the pandemic is still influencing homebuyer preference at this level of the market. Wandsworth has seen the largest annual uplift in demand at 31.6%, while Wimbledon also ranks high with a 26.5% annual increase, as does Highgate (21.5%).
Wapping (14.7%), Putney (13.8%), Islington (12.8%), Fulham (11.6%), Richmond (10.5%), Notting Hill (9.4%) and Chiswick (8%) also rank amongst the areas to have seen the largest annual uplift in homebuyer demand for homes prices at £2m or more.
£10m+ Market
Homebuyer demand across the very top tier of the London property market has again remained largely static between Q2 and Q3 (0.1%) but has increased 1.8% year on year.
Wimbledon also tops the table where super-prime property demand is concerned. Having seen no demand for homes at £10m+ over the last year, the area has seen a 66.7% uplift in Q3 of this year – the largest annual increase of all areas.
However, it’s London’s more traditionally prime areas that account for the largest degree of market activity at the £10m+ threshold.
Notting Hill has seen demand increase by 22.1% annually, while Holland Park has also seen a double-digit uplift at 12.5%.
Kensington has seen an annual increase of 7.3% in buyer demand for homes at £10m or more, with Hampstead (6.3%), Victoria (3.4%), Belgravia (3.3%), Mayfair (2.9%), Chelsea (1.7%) and St John’s Wood (1.4%) also seeing some of the largest annual increases in super-prime homebuyer demand.
Director of Benham and Reeves, Marc von Grundherr, commented:
“We’re certainly not seeing a fully rejuvenated prime London market at present and the pandemic continues to play a part both in terms of where buyers are transacting, as well the ongoing absence of foreign demand due to travel complications.
However, what we are seeing are strong signs that the market is starting to pick back up. Those areas offering a greater abundance of larger homes with more green space are still performing well but we’re now seeing demand increase in the more traditional heartlands of the prime market where there was previously little to no interest at all.
As we ease back to a full state of normality, it’s very likely that these green shoots will continue to blossom.”
Table shows current buyer demand for homes at £2m+ and the quarterly and annual change
Area
Prime category
Q3, 2021
Quarterly Change
Annual change
Wandsworth
Prime SW London
54.0%
3.3%
31.6%
Wimbledon
Prime SW London
53.1%
3.4%
26.5%
Highgate
Prime NW London
47.6%
8.3%
21.5%
Wapping
Prime E London
23.8%
8.4%
14.7%
Putney
Prime SW London
37.1%
-6.5%
13.8%
Islington
Prime N London
36.5%
-1.3%
12.8%
Fulham
Prime SW London
25.0%
-2.8%
11.6%
Richmond
Prime SW London
38.7%
-2.5%
10.5%
Notting Hill
Prime C London
25.2%
-4.6%
9.4%
Chiswick
Prime SW London
43.9%
-0.8%
8.0%
Barnes
Prime SW London
44.3%
-1.5%
7.1%
Pimlico
Prime C London
14.1%
1.4%
6.6%
Belgravia
Prime C London
14.7%
0.6%
5.6%
Chelsea
Prime C London
14.9%
-1.0%
5.2%
Victoria
Prime C London
15.0%
1.1%
4.4%
Holland Park
Prime C London
23.2%
-2.1%
4.4%
Kensington
Prime C London
16.6%
0.3%
3.0%
Mayfair
Prime C London
5.0%
-2.2%
0.5%
Knightsbridge
Prime C London
15.2%
3.1%
0.4%
Regents Park
Prime C London
10.0%
2.0%
-0.5%
St John’s Wood
Prime C London
11.3%
-2.4%
-0.9%
Clapham
Prime SW London
38.8%
-1.8%
-1.4%
Marylebone
Prime C London
3.3%
-1.4%
-1.4%
Canary Wharf
Prime E London
0.0%
-5.6%
-3.0%
Battersea
Prime SW London
9.2%
-3.4%
-4.5%
Fitzrovia
Prime C London
2.4%
-2.0%
-4.6%
Maida Vale
Prime C London
14.1%
0.8%
-7.7%
Hampstead Garden Suburb
Prime NW London
10.2%
-9.3%
-11.6%
Overall
23.1%
-0.7%
5.8%
Data sourced from Rightmove for Q3, 2021
Table shows current buyer demand for homes at £10m+ and the quarterly and annual change
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.