The most recent Prime London Purchaser Demand Index by London lettings and property agent, Benham and Reeves, has proven that life is returning to London’s excessive finish housing market, with purchaser demand climbing 2.5% throughout the prime market on a quarterly foundation, whereas the tremendous prime market has additionally seen a 1.9% improve.
The Prime London Demand Index by Benham and Reeves screens demand for London’s most costly properties based mostly on the extent of market exercise seen between the £2m to £10m threshold and the tremendous prime market of £10m+. Demand relies on the proportion of all houses listed on the market throughout the prime market which have already been offered topic to contract.
Prime Market – £2m-£10m
The most recent index by Benham and Reeves exhibits that purchaser demand throughout London’s core prime market at the moment sits at 23.2%, having climbed by 2.5% because the first quarter of this yr. Nevertheless, present demand ranges stay -2% decrease when in comparison with the second quarter of final yr.
Islington is the most well liked spot of the core prime market, with 50% of all houses listed on the market between £2m and £10m already offered topic to contract. Richmond (49.1%) and Chiswick (48.7%) are additionally house to a few of the highest ranges of high-end purchaser demand at current.
Wapping has seen the most important quarterly enchancment in market exercise, with demand ranges climbing by +12.2% because the first quarter of this yr, adopted by Canary Wharf (12%) and Chiswick (11.2%).
Wapping has additionally seen the most important annual improve in purchaser demand ranges, up -23.2% versus the second quarter of 2022. Richmond (+11.1%) and Islington (+8%) full the highest three largest annual uplifts.
Tremendous Prime Market – £10m+
Throughout the tremendous prime London market, 8.9% of houses at the moment listed on the market have already been taken by the capital’s tremendous rich homebuyers. Because of this, demand for London’s most costly houses has climbed by +1.9% versus Q1 of this yr and in addition sits +1.7% larger on an annual foundation.
Pimlico and Wimbledon are essentially the most in-demand areas of the tremendous prime market the place, like Islington, half of all houses listed above £10m have already offered. Holland Park ranks third the place purchaser demand ranges at the moment sit at 13%.
On a quarterly foundation, Wimbledon has seen a +50% improve in market exercise, the most important quarterly uplift of all tremendous prime areas. Pimlico follows with a rise of +16.7%, adopted by Victoria (+7.5%).
Yearly, it’s Pimlico that has seen a +50% improve in purchaser demand ranges, with Wimbledon once more performing strongly (+25%) and Holland Park (+13%) additionally making the highest three.
Director of Benham and Reeves, Marc von Grundherr stated, “We noticed a dip in high-end homebuyer demand in the course of the first quarter of this yr however it definitely appears as if the prime London market has now discovered its ft and we’re beginning to see the sturdy curiosity proven in current months convert to precise transactions.
Whereas a few of the prime market’s extra peripheral neighbourhoods stay the vacation spot of selection for a lot of, it’s nice to see central areas equivalent to Wapping, Canary Wharf and Pimlico additionally main the cost.
This demonstrates that the tide has very a lot turned and patrons are actually trying from the skin by which ought to assist drive the market ahead over the yr forward.”