Prime London property market bounces back as homebuyers return in Q2

The latest property market analysis by London lettings and estate agent, Benham and Reeves, has revealed that the prime London property market has rebounded in Q2, with homebuyer demand climbing on both a quarterly and annual basis.

The PCL Homebuyer Demand Index by Benham and Reeves monitors demand for homes valued between £2-£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. E.g, if 100 homes are listed and 50 are already sold, the demand score would be 50%.

Prime Market – £2m-£10m

Across the core prime market, buyer demand has not only climbed by +1% in the second quarter of this year, reversing the decline seen in Q1, but it’s also up +1% on an annual basis.

Chiswick (51%), Barnes (51%) and Wandsworth (48%) are home to the current highest demand for prime properties.

Barnes (+7%), Highgate (+7%), Wandsworth (+6%), Wimbledon (+6%) and Maida Vale (+6%) have seen the largest quarter uplift in demand.

On an annual basis, Canary Wharf (+14%), Battersea (+10%) and Victoria (+8%) have enjoyed the biggest turnaround in buyer demand.

Super Prime Market – £10m+

While buyer demand across the very top end of the London market 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 £10m or above 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.

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

“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.

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.

While the more peripheral areas that gained pandemic popularity are still in high-demand, we’ve also seen a strong uplift in appetite for prime homes 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.”

Data sourced from the major property portals during Q2, 2022, with demand based on the number of prime properties already sold subject to contract or under offer as a percentage of total properties listed. (Rightmove, Zoopla, PrimeLocation, Boomin)