Homebuyer demand returns to the capital in Q2, analysis shows
The prime London property market has rebounded in the second quarter of this year, with homebuyer demand climbing on both a quarterly and annual basis.
The latest property market analysis by London lettings and estate agent Benham and Reeves has revealed that across the core prime market, buyer demand has not only climbed by +1% in Q2, reversing the decline seen in Q1, it’s also up +1% on an annual basis.
The prime market consists of properties with prices that range from £2 million to £10 million.
Currently, Chiswick (51%), Barnes (51%), and Wandsworth (48%) are home to the highest demand for prime properties. Barnes (+7%), Highgate (+7%), Wandsworth (+6%), Wimbledon (+6%), and Maida Vale (+6%) have seen the largest quarterly uplift in demand. On an annual basis, Canary Wharf (+14%), Battersea (+10%) and Victoria (+8%) have enjoyed the biggest turnaround in buyer demand.
Read more: Prime London property prices are trending up.
Benham and Reeves said that while buyer demand across the super prime market – consisting of properties worth more than £10 million – remains -1% down on an annual basis, there has been a notable +4% increase between the first and second quarters of this year.
Fitzrovia, Hampstead Garden Suburb, and Wimbledon rank as the current hottest spots of the super prime market, with 25% of all homes listed at over £10 million already under offer or sold subject to contract.
While Fitzrovia and Hampstead Garden Suburb have also seen some of the largest quarterly growth, it’s Belgravia that has enjoyed the best Q2 performance, with buyer demand climbing by a huge 34% since the start of the year.
“It’s been a fairly slow start to the year for the prime London market and there’s no doubt the uncertainty caused as a result of the Ukraine conflict has added to the post-Christmas lethargy that traditionally dampens buyer appetites during the first quarter of the year,” Marc von Grundherr, director at Benham and Reeves, commented.
“But since then, we’ve seen a real mark of intent from high-end buyers, with demand for prime homes starting to climb, particularly across the super prime market.”
Grundherr added that while the more peripheral areas that gained pandemic popularity are still in high demand, a strong uplift in appetite for prime homes was observed in Canary Wharf and Victoria, which is extremely promising where the overall health of the city is concerned.
“In addition to these more professionally focused hubs performing well, demand is also returning to the traditional prime heartlands of Belgravia and Fitzrovia and this is a sure sign that we’re in for a strong year ahead,” Grundherr concluded.
The PCL Homebuyer Demand Index by Benham and Reeves monitors demand for homes valued between £2 million to £10 million, and £10 million and above, based on the ratio of properties listed online that have already sold subject to contract or gone under offer.
