Prime London buyer demand has dipped in the past quarter, according to Benham and Reeves.
The estate agency monitors demand for high-end homes in the capital, with the latest research, based on the proportion of all homes listed for sale across the prime market that have already been sold subject to contract, revealing that in the prime market (£2m-£10m) buyer demand for Q3 2023 currently sits at 19.6% having fallen by 3.7% since the second quarter of this year.
In terms of the annual picture, prime demand is down 5.9% compared to the third quarter of 2022.
According to Benham and Reeves, Clapham is the hottest spot of the core prime market, with almost half – 47.5% – of all homes listed for sale between £2m and £10m already sold subject to contract.
Chiswick (41.8%) and Highgate (38.6%) are also home to some of the highest levels of high-end buyer demand at the moment.
However, on an annual basis, it is prime London’s traditionally popular neighbourhoods that has seen the greatest improvement in demand.
Fitzrovia recorded the largest increase year-on-year, with annual growth of 5.3%. Putney (3.9%), Regents Park (2.3%), and Islington (2.3%) have also been among the highest annual uplifts.
Across the super prime London market (£10m-plus), 5.1% of homes currently listed for sale have already been secured by super wealthy homebuyers.
Consequently, demand for London’s most expensive homes has fallen by 3.8% compared Q2 2023 and dropped by 1% since this time last year.
Clapham is the most in-demand area of the super prime market with half of all homes listed above £10m already sold. In Fitzrovia and Notting Hill, demand sits at 12.5%.
On a quarterly basis, Clapham has seen a 50% hike in demand, followed by Fitzrovia (12.5%), and Hampstead Garden Suburb (6.7%).
Annually, demand in Clapham is up 50%, while Fitzrovia and Notting Hill have each seen demand rise by 12.5% in the past year.
Benham and Reeves director, Marc von Grundherr, said: “We had previously seen some strong growth in demand across the prime London market as a whole and this was largely driven by the more peripheral locations enjoying a pandemic boost in buyer appetites, coupled with returning interest from foreign shores”.
“However, market activity has cooled during the third quarter of this year and this generally echoes the wider market trends being seen across London.”
He added: “While international buyers, in particular, have been less deterred by rising interest rates, it’s fair to say that the wider economic picture has caused hesitation amongst many prime buyers. It’s also important to note that the summer period does tend to bring a lull in market activity and this combination of factors has caused demand for London’s high-end homes to fall.”
