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Prime London demand climbs in Q2, reversing downward trend seen so far this year

The latest Prime London Demand Index by London lettings and estate agent, Benham and Reeves, has revealed that prime buyer demand crept up during the first quarter of this year, reversing the negative trends seen during Q1, although demand remains down on an annual basis.

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 to £10m)

The latest index shows that across the prime market (£2m to £10m), almost one in five prime London properties had found a buyer in Q2 (19.4%), with demand climbing by 0.4% versus the first quarter, although it remained -3.8% off the same pace seen this time last year.

Hampstead topped the table in Q2 with the largest quarterly increase at 10%, with Regents Park (+7.5%), Highgate (+7.1%), Barnes (+4.8%) and Wandsworth (+4.8%) also seeing notable uplifts, whilst Chiswick (-14.8%), Putney (-11.4%) and Wapping (-5.9%) saw the largest quarter to quarter reductions in buyer appetites.

Super prime market (£10m+)

At the very top of London’s property ladder, just 2.2% of all homes listed had secured a buyer in Q2, with super prime demand also creeping up versus Q1 at 0.6%, but again remaining -6.7% down annually.

Hampstead also saw the largest quarterly demand increase across the super prime market, up +9.5%, with Chelsea (+5.4%), Holland Park (+3.6%), St John’s Wood (+3.2%) and Mayfair (+3.2%) amongst the other largest quarterly increases.

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

“The prime London market is one that tends to move slow and steady when compared to the wider UK, but it’s fair to say that it’s been a tentative first six months and the uncertainty of the wider economic landscape has led to a heightened degree of hesitation amongst buyers.

However, as inflation has eased and the economy has stabilised we’ve seen green shoots of buyer activity emerging and we expect the second half of the year to be more fruitful.”

Prime London Market – £2m plus
Area	Prime category	Q2 2024	Q Change	Annual change
Hampstead	Prime NW London	15.6%	10.0%	2.8%
Regents Park	Prime C London	12.9%	7.5%	1.6%
Highgate	Prime NW London	35.9%	7.1%	0.5%
Barnes	Prime SW London	38.1%	5.8%	-4.5%
Wandsworth	Prime SW London	36.6%	4.8%	7.7%
Canary Wharf	Prime E London	12.0%	4.3%	-8.0%
Mayfair	Prime C London	10.6%	3.6%	-0.4%
St John’s Wood	Prime C London	13.0%	3.1%	2.3%
Marylebone	Prime C London	7.2%	2.2%	0.4%
Knightsbridge	Prime C London	10.3%	1.7%	1.1%
Victoria	Prime C London	10.3%	1.7%	-4.0%
Pimlico	Prime C London	12.7%	1.5%	-2.1%
Richmond	Prime SW London	30.7%	1.5%	-18.4%
Battersea	Prime SW London	20.8%	1.1%	5.6%
Belgravia	Prime C London	9.0%	0.9%	-5.0%
Chelsea	Prime C London	13.6%	0.4%	0.7%
Fitzrovia	Prime C London	4.4%	0.0%	-1.1%
Kensington	Prime C London	11.4%	-0.1%	-2.1%
Clapham	Prime SW London	36.8%	-0.5%	-1.7%
Islington	Prime N London	42.9%	-0.7%	-7.1%
Notting Hill	Prime C London	17.9%	-1.4%	-3.4%
Fulham	Prime SW London	23.1%	-1.9%	2.2%
Wimbledon	Prime SW London	28.8%	-2.4%	-8.3%
Maida Vale	Prime C London	11.0%	-3.1%	-1.7%
Holland Park	Prime C London	13.7%	-3.6%	-7.1%
Wapping	Prime E London	0.0%	-5.9%	-35.7%
Putney	Prime SW London	29.6%	-11.4%	-7.2%
Chiswick	Prime SW London	34.2%	-14.8%	-14.5%
Overall average		19.4%	0.4%	-3.8%

Super Prime London Market – £10m plus
Area	Prime category	Q2 2024	Q Change	Annual change
Hampstead	Prime NW London	9.5%	9.5%	9.5%
Chelsea	Prime C London	5.4%	5.4%	3.4%
Holland Park	Prime C London	3.6%	3.6%	-9.5%
St John’s Wood	Prime C London	6.7%	3.2%	3.4%
Mayfair	Prime C London	5.1%	3.2%	3.5%
Fitzrovia	Prime C London	0.0%	0.0%	0.0%
Maida Vale	Prime C London	0.0%	0.0%	-11.1%
Notting Hill	Prime C London	0.0%	0.0%	-9.1%
Highgate	Prime NW London	0.0%	0.0%	0.0%
Islington	Prime N London	0.0%	0.0%	x
Battersea	Prime SW London	0.0%	0.0%	0.0%
Belgravia	Prime C London	2.7%	-0.4%	-3.9%
Victoria	Prime C London	4.4%	-1.1%	-6.7%
Knightsbridge	Prime C London	0.0%	-2.1%	-4.1%
Kensington	Prime C London	1.3%	-2.2%	-10.6%
Marylebone	Prime C London	2.9%	-3.6%	-2.0%
Regents Park	Prime C London	0.0%	-5.0%	0.0%
Overall average		2.2%	0.6%	-6.7%

About the Author

Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 15 international offices.

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