Demand from London’s wealthiest consumers dips in Q1

The newest Prime Central London Purchaser Demand Index by London lettings and property agent, Benham and Reeves, has discovered that demand is down throughout the prime London market (£2m-£10m) each on a quarterly and annual foundation, whereas a quarterly decline within the super-prime market (£10m+) has not been sufficient to disrupt a 12 months of constructive annual progress.

The Prime Central London Demand Index by Benham and Reeves screens demand for London’s costliest properties based mostly on the extent of market exercise seen between the £2m to £10m threshold and the tremendous prime market of £10m+.

Prime Market – £2m-£10m 

Throughout the core prime market, purchaser demand has seen a slight decline within the first quarter of 2023, falling by 0.6% to sit down at 20.8% presently. This cool in market exercise additionally ends in an annual decline of -3.9% since this time final 12 months.

Islington (45.9%), Richmond (43.8%), and Barnes (43.6%) are dwelling to the present highest demand for prime properties.

By way of quarterly change, nonetheless, Wapping has seen the strongest progress at 14.4%, adopted by Islington (8.0%), Richmond (7.4%), and Barnes (5.8%).

The biggest quarterly decline in demand for prime London property has been recorded in Chiswick the place it has dropped by -14.2% previously three months, adopted by Highgate (-10.9%), Wimbledon (-10.2%), and Fulham (-5.7%).

On an annual foundation, Hampstead has seen its recognition develop essentially the most with a Prime demand enhance of seven.4%. In Islington, demand is up 6.4%, whereas Wapping (4.5%), Richmond (1%), Chelsea (0.9%), Regents Park (0.9%), and Barnes (0.2%) have additionally recorded annual demand progress.

The biggest annual declines have been recorded in Clapham (-26.7%), Wandsworth (-19%), and Highgate (-11.6%).

Tremendous Prime Market – £10m+

London’s super-prime market has additionally recorded a quarterly lower in demand in Q1 2023, falling by -2.8% to sit down at 7.5% presently. Nonetheless, on an annual foundation demand has nonetheless elevated by 4.9%.

Pimlico is the most popular spot in London’s tremendous prime market with present demand at 33.3% adopted by Holland Park (20%), Maida Vale (12.5%), and Marylebone (10.5%).

The biggest quarterly enhance has been recorded in Holland Park the place demand is up 13.8%. That is adopted by Kensington (6.2%), Regents Park (3%), and Knighstbridge (1.7%).

The most important quarterly drops have are available in, Pimlico (-33.3%), and Fitzrovia (-20%) and Victoria (-11.8%)

As for annual demand change, the perfect performing areas of London are Pimlico (33.3%), Belgravia (21.9%), and Holland Park (13.8%)

The worst annual drops have are available in Wimbledon (-25%), Notting Hill (-10%), and Hampstead (-8.3%).

Director of Benham and Reeves, Marc von Grundherr stated, “Homebuyer exercise throughout the prime London market had proven indicators of enchancment all through a lot of final 12 months, with momentum constructing, pushed by the return of overseas curiosity within the capital’s historically prime neighbourhoods.

Nonetheless, it’s clear that the present uncertainty of the UK’s financial panorama is sufficient to unsettle even the wealthiest of consumers and this has led to a discount in demand because the remaining quarter of final 12 months.

We count on this to be a short lived dip on account of a wait and see mentality fairly than a downward curve and we’re additionally seeing substantial demand for rental properties at current by these wishing to make their transfer with out committing to a purchase order.

We presently have a median of 32 candidates for each rental property for the time being which is a few 21% greater than we did final 12 months.”