Buyer demand for prime London homes (£2m-plus) climbed during the final quarter of 2023, according to analysis by Benham and Reeves. 

However, the super prime market (£10m-plus) continues to struggle, the London lettings and estate agent has found. 

The Prime London Demand Index by Benham and Reeves monitors demand for London’s most expensive properties based on the level of market activity seen between the £2m to £10m threshold and the super prime market of £10m-plus. 

Demand is based on the proportion of all homes listed for sale across the prime market that have already been sold subject to contract. 

The latest index shows that buyer demand across London’s core prime market climbed by 1.1% in Q4 2023, with just over one in five of all homes listed finding a buyer. However, demand remained down on an annual basis, albeit a marginal drop of 0.7%. 

Chiswick was the hottest spot of the prime London market during the closing stages of 2023, with buyer demand levels at 52.1%. 

Richmond enjoyed the largest quarterly uplift in buyer demand, climbing 10.9% versus Q3, with Chiswick again performing well with a 10.3% increase. 

Islington (+5.6%), Wimbledon (+5.5%) and Notting Hill (+4.7%) also saw some of the largest quarterly increases in prime London buyer demand. 

On an annual basis, Putney (+11.4%), Clapham (+11.3%) and Highgate (+4.9%) saw the largest uplifts in high-end market activity versus Q4 of the previous year.

Across the super prime London market, demand fell by 3.4% in Q4 versus the previous quarter and remained some 11.9% below the levels seen in Q4 of the previous year. 

Notting Hill was the most in-demand area of the super prime market, with 9.1% of all homes listed above £10m finding a buyer. Chelsea (8.5%) and Mayfair (5.7%) also saw some of the highest demand for London’s most expensive homes. 

Chelsea saw the largest quarterly uplift in demand for super prime London homes, up 8.5% versus Q3, followed by Holland Park (+4.3%) and Mayfair (+3.8%). 

Mayfair was the only area to see a year-on-year increase in super prime demand at +1.5%. 

Marc von Grundherr, director of Benham and Reeves, commented: “London’s top tier property market largely echoed the subdued market performance seen across the rest of the capital during the final quarter of 2023. 

“However, there are signs that these cooler market conditions could be on the turn, with buyer demand starting to climb across the core prime market, resulting in many individual neighbourhoods registering strong growth. 

“It may take some time yet before this growing market sentiment reaches the dizzying heights of the super prime market, although this segment has always been very much about quality over quantity to begin with. That said, as London’s high-end homebuyers continue to return it’s only a matter of time before this momentum flows upstream.”