The latest Prime London Demand Index by Benham and Reeves shows an uptick in demand for high-end properties in Q2, reversing the downward trend observed earlier this year, although annual figures remain lower.
Growth in prime market
The Prime London Demand Index tracks the market activity for properties priced between £2 million and £10 million, as well as those exceeding £10 million. In Q2, nearly one in five prime London properties found a buyer, with demand increasing by 0.4% from Q1, though it is still 3.8% below last year’s figures.
Hampstead led the way with a 10% increase in buyer interest, followed by Regents Park (7.5%), Highgate (7.1%), Barnes (4.8%), and Wandsworth (4.8%). Conversely, Chiswick, Putney, and Wapping saw the largest declines in buyer demand, with drops of 14.8%, 11.4%, and 5.9% respectively.
Super prime market trends
In the super prime market, encompassing properties priced over £10 million, only 2.2% of listings found buyers in Q2. This segment also experienced a slight quarterly increase of 0.6% but remains 6.7% down compared to last year. Hampstead again topped the list with a 9.5% rise in demand, followed by Chelsea (5.4%), Holland Park (3.6%), St John’s Wood (3.2%), and Mayfair (3.2%).
Economic stability influencing market
Marc von Grundherr, Director of Benham and Reeves, commented on the trends: “The prime London market is one that tends to move slow and steady when compared to the wider UK, but it’s fair to say that it’s been a tentative first six months and the uncertainty of the wider economic landscape has led to a heightened degree of hesitation amongst buyers. However, as inflation has eased and the economy has stabilised we’ve seen green shoots of buyer activity emerging and we expect the second half of the year to be more fruitful.”
Looking ahead
The data suggests that while the prime London market is regaining momentum, it remains influenced by broader economic conditions. The easing of inflation and economic stabilisation have begun to restore buyer confidence, potentially leading to more robust market activity in the latter half of the year. For both buyers and sellers in the high-end market, these trends highlight the importance of monitoring economic indicators and staying informed about market dynamics.
