Despite the looming specter of a general election, the anticipation of potential political changes has already been largely factored into the market. Prices across prime central London have shown resilience, remaining relatively stagnant with a marginal 0.1% increase in Q1 2024, marking the first positive quarterly movement since mid-2022. Overall, prices have experienced a modest decline of just -1.2% since the mini-budget in September 2022. The increased employment of cash and equity has provided a buffer against higher interest rates, albeit with a discernible sensitivity to price fluctuations.
However, an interesting shift is underway, with a noticeable rise in domestic buyers participating in the market, particularly evident in areas like Hampstead, St John’s Wood, and Kensington. Houses, in particular, have witnessed a resurgence, constituting 61% of £5 million-plus transactions in Q1 2024, marking the highest proportion since the pandemic-induced ‘race for space’ in Q1 2021.
Traditional prime central London postcodes continue to command attention, retaining their allure among the global elite who still perceive London as a highly desirable abode. Notably, Mayfair emerged as the frontrunner, comprising 15% of total sales and reclaiming the top spot from Chelsea for the first time since 2020. Collectively, Mayfair, Belgravia, Chelsea, and Kensington together accounted for over half (52%) of all transactions in this price bracket.
If you’re considering your next move in London’s prime market, our Property Search Services offers access and insight needed to act with confidence. More details are available at www.edingtons.co.uk.