The prime central London Buyer Demand Index from Benham and Reeves has revealed a decline in demand across the prime London market of £2m-£10m, both on a quarterly and annual basis. 

However, the quarterly decline in the super-prime market of £10m-plus has not been enough to disrupt a year of positive annual growth.

In the core prime market, buyer demand has seen a slight decline in the first quarter of 2023, falling by 0.6% to sit at 20.8% currently. This has also resulted in an annual decline of 3.9% since this time last year. 

Islington, Richmond, and Barnes are currently the most popular areas for prime properties, with Wapping recording the strongest growth at 14.4% in terms of quarterly change.

On the other hand, Chiswick has seen the largest quarterly decline in demand for prime London property, dropping by 14.2% in the past three months, followed by Highgate, Wimbledon, and Fulham. 

In terms of annual growth, Hampstead has seen the most significant increase in demand for prime property at 7.4%.

In the super-prime market of £10m-plus, London has seen a quarterly decrease in demand in Q1 2023, falling by 2.8% to sit at 7.5% currently. Despite this, demand has increased by 4.9% on an annual basis. 

Pimlico is currently the hottest spot in London’s super-prime market, with Holland Park recording the largest quarterly increase in demand at 13.8%.

In terms of annual demand change, Pimlico, Belgravia and Holland Park have been the best-performing areas of London. Conversely, Wimbledon, Notting Hill and Hampstead have seen the largest annual drops in demand.

Marc von Grundherr, director of Benham and Reeves, commented: “It’s clear that the current uncertainty of the UK’s economic landscape is enough to unsettle even the wealthiest of buyers and this has led to a reduction in demand since the final quarter of last year. 

“We expect this to be a temporary dip due to a wait and see mentality rather than a downward curve and we’re also seeing substantial demand for rental homes at present by those wishing to make their move without committing to a purchase.”