Prime London’s £5 Million-Plus Market Holds Strong Despite Recent Slowdown
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.
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