Cash remains king at top end of London’s housing market – London Wallet

Prime London’s housing market activity remains broadly “robust”, wealthy cash buyers continue to prop up activity levels, according to Savills.

The estate agency reports that there were 390 sales of properties worth £5m-plus in the capital in the first nine months of the year to September.

The number of transactions was down on the 459 in the same period in 2022 — a record year for the high-end market — but 67% higher than the pre-pandemic average taken over the three years to 2019.

These figures included 120 properties worth £10m, which was up 50% compared with the pre-pandemic average.

Chelsea, Kensington and Belgravia accounted for a third of the sales of £5m-plus properties, according to the findings.

Overall sales in that segment totalled £4.3bn in the first nine months, with the third quarter accounting for £1.7bn worth of deals as sales activity picked up slightly on the rest of the year.

Frances McDonald, head of residential research at Savills, said: “Predominantly at this price point [the increase] is mainly fuelled by cash buyers,” McDonald said. Wealthy buyers had returned to their traditional preference of cash purchases after briefly switching to very low-rate mortgages available during the Covid-19 pandemic.”

“The apartment market is dominated by global cash, with buyers often making their first London purchase, whereas houses are the preserve of UK buyers or those from around the world who’re fully settled in London, invariably buying for the second or third time as family needs evolve,” said Alex Christian, joint head of Savills private office,” she added.

McDonald said North American buyers looking to make the most of the strong dollar had helped underpin the top end of the market this year.