Recent findings by London lettings and estate agent Benham and Reeves have spotlighted the dominance of high-end homes priced above £1m in the London property market. The data revealed these luxury homes are leading in both market activity and buyer demand within the capital.
Benham and Reeves conducted an analysis of property listings throughout London based on varying price ranges. They then gauged which price category had the highest volume of for sale stock and, correspondingly, the strongest homebuyer interest. The metrics considered the proportion of total stock already designated as ‘under offer’ or ‘sold subject to contract’.
Earlier studies by the estate agent discovered that, in this year alone, London saw the sale of 3,716 properties priced at £1m or above. This represents a notable 21.1% of all sales within the city.
The recent research only strengthens these findings. Not only does the £1m+ category account for the pinnacle of buyer interest, but it also dominates the available for sale stock in London.
Delving into specifics:
- There are approximately 19,116 homes listed at £1m or higher in London, representing 19% of the city’s total market stock – the largest among all price categories.
- A significant 85% of all homes in the UK priced at £1m or more are located in London.
- The only other price category that comes somewhat close is the £400,000 to £499,999 bracket, which constitutes 16% of the total market, followed by properties priced between £300,000 and £399,999 at 14%.
- Homes priced below £100,000 are rare in the capital, making up a mere 1% of the currently available for sale stock.
In terms of demand:
- An impressive 77% of properties in London priced at £1m or above are currently marked as under offer or sold subject to contract, showcasing the unmatched demand in this segment.
- On the opposite end of the spectrum, properties in the £400,000 to £499,999 bracket experience the lowest demand, with 59% currently marked as under offer or sold subject to contract.
- Buyer demand appears robust across the entire UK for all price brackets, except for homes priced £800,000 and above. This indicates that luxury homes are presently the driving force propelling London’s property market.
Marc von Grundherr, Director of Benham and Reeves, remarked on the findings, stating: “When it comes to current market performance, it’s clear that London is being driven by the one million pound plus market at present, as not only is demand highest at this price threshold, but so too is the level of stock making its way to the market. It’s no different in the rental market either, with homes commanding £1,000 per week an upwards seeing a very high level of tenant demand at present. That’s not to say that there isn’t a good level of stock at other price thresholds, or demand for that matter. However, the lower tiers of the market are certainly more susceptible to the uncertainty of the current economic landscape, as well as the increased cost of buying driven by increasing mortgage rates in recent times.”