Promising signs for prime London market

Promising signs for prime London market as buyer demand climbs in Q2

The latest Prime London Buyer Demand Index by London lettings and estate agent, Benham and Reeves, has shown that life is returning to London’s high end housing market, with buyer demand climbing 2.5% across the prime market on a quarterly basis, while the super prime market has also seen a 1.9% increase.

The Prime London Demand Index by Benham and Reeves monitors demand for London’s most expensive properties based on the level of market activity seen between the £2m to £10m threshold and the super prime market of £10m+. Demand is based on the proportion of all homes listed for sale across the prime market that have already been sold subject to contract.

Prime Market – £2m-£10m
The latest index by Benham and Reeves shows that buyer demand across London’s core prime market currently sits at 23.2%, having climbed by 2.5% since the first quarter of this year. However, current demand levels remain -2% lower when compared to the second quarter of last year.

Islington is the hottest spot of the core prime market, with 50% of all homes listed for sale between £2m and £10m already sold subject to contract. Richmond (49.1%) and Chiswick (48.7%) are also home to some of the highest levels of high-end buyer demand at present.

Wapping has seen the largest quarterly improvement in market activity, with demand levels climbing by +12.2% since the first quarter of this year, followed by Canary Wharf (12%) and Chiswick (11.2%).

Wapping has also seen the largest annual increase in buyer demand levels, up -23.2% versus the second quarter of 2022. Richmond (+11.1%) and Islington (+8%) complete the top three largest annual uplifts.

Super Prime Market – £10m+
Across the super prime London market, 8.9% of homes currently listed for sale have already been taken by the capital’s super wealthy homebuyers. As a result, demand for London’s most expensive homes has climbed by +1.9% versus Q1 of this year and also sits +1.7% higher on an annual basis.

Pimlico and Wimbledon are the most in-demand areas of the super prime market where, like Islington, half of all homes listed above £10m have already sold. Holland Park ranks third where buyer demand levels currently sit at 13%.

On a quarterly basis, Wimbledon has seen a +50% increase in market activity, the largest quarterly uplift of all super prime areas. Pimlico follows with an increase of +16.7%, followed by Victoria (+7.5%).

Annually, it’s Pimlico that has seen a +50% increase in buyer demand levels, with Wimbledon again performing strongly (+25%) and Holland Park (+13%) also making the top three.

Director of Benham and Reeves, Marc von Grundherr, commented:

“We saw a dip in high-end homebuyer demand during the first quarter of this year but it certainly seems as though the prime London market has now found its feet and we’re starting to see the strong interest shown in recent months convert to actual transactions.

While some of the prime market’s more peripheral neighbourhoods remain the destination of choice for many, it’s great to see central locations such as Wapping, Canary Wharf and Pimlico also leading the charge.

This demonstrates that the tide has very much turned and buyers are now looking from the outside in which should help drive the market forward over the year ahead.”