Prime London recovery gathers pace for higher-priced homes says top agent

The latest market snapshot of prime London by estate agency Benham and Reeves shows demand up 5.8 per cent annually for homes at £2m and above, and by 1.8 per cent for the £10-plus niche.

The index 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; it then highlights where high-end homebuyer demand is at its strongest, as well as how this demand has changed.

The agency says that although lockdown restrictions have all but disappeared, it’s clear the pandemic is still influencing homebuyer preference. 

For £2m-plus homes, Wandsworth has seen the largest annual uplift in demand at 31.6 per cent, while Wimbledon also ranks high with a 26.5 per cent; Highgate has seen a 21.5 per cent rise. Wapping, Putney, Islington, Fulham and Richmond are all above 10 per cent.

For the £10m-plus sector, Wimbledon tops the table; having seen no demand for homes at £10m+ over much of 2020, the area has seen a 66.7 per cent 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 per cent annually, while Holland Park has also seen a double-digit uplift at 12.5 per cent.

The director of Benham and Reeves, Marc von Grundherr, comments: “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.”