The £5m-plus residential property market in remained resilient over the second quarter of 2024, according to the latest research from property firm Savills, with transactions significantly stronger than the pre-pandemic average.

Across the whole market, there have been 120 £5m-plus sales in London during Q2, both second-hand and new build.

While this is -15% below Q2 2023, transactions are up a significant 38% on the pre-pandemic average for the second quarter of the year.

Frances McDonald, director, residential research at Savills, said: “Despite the highly discretionary nature of the top-end of London’s prime market, it’s very promising to see continued momentum from buyers to secure an address in one of the capital’s prime postcodes.

“We would expect the combination of changes to the existing non-doms regime, and pre-election caution, to cause more buyers to sit on the fence while they wait for further clarity. But a continued desire for first-class property has meant that market activity remains stronger than before the pandemic.

“Ongoing activity is supported by UK nationals and those overseas buyers who are not UK residents, while those who will be directly affected continue to weigh up their options. There’s certainly no evidence to suggest that we will see a flurry of stock coming onto the market. Still, buyers, and indeed potential sellers, will be closely monitoring any further tax implications now that a new government has been formed.”

Looking at the first six months of the year as a whole, the greatest proportion (15%) of £5m-plus sales took place in Belgravia, far higher than the 9% seen in the three years prior, thanks to greater investment into the area, making it more attractive to younger buyers, in particular. While traditional prime postcodes Kensington (14%), Mayfair (11%) and Chelsea (10%) closely followed.

In keeping with more domestic demand, £5m-plus house sales made up a significant proportion of activity (64%), with the highest number of house sales taking place in Kensington (16%) and Chelsea (13%), both well-known for their larger family homes.

£10m+ market remains remarkably strong

For the £10m-plus market, transactions have remained remarkably strong given the discretionary nature of this part of the market. There were 38 £10m-plus sales across London in Q2 2024, -10% down on Q2 2023 but 58% up on Q1 2024 and 18% up on pre-pandemic levels.

The accumulative total of £5m-plus property transacted in Q2 2024 was £1.27bn – taking the total spend of transactions in H1 to £2.2bn. While the average value of transactions was £10.4m – on par with the previous two years.

Alex Christian, co-head of Savills Private Office, commented: “Greater buyer and vendor alignment on price, particularly at the top end of the prime market, has meant we have seen a flurry of deals above £10m over the past three months.

“Activity is strongest in pockets of the market where vendors are prepared to be pragmatic on price in order to sell. Momentum to get deals across the line has seemingly broadly picked up since the general election result although we expect this might soften slightly as we enter the typically quieter summer holiday period and in the run-up to an anticipated interest rate cut.

“Whilst an element of caution certainly remains, we are seeing good demand from those who need to be in the capital for work, and by those who see London as an attractive place to base themselves and raise a family. Many of our buyers are also continuing to recognise the value on offer in prime central London, both in a historical context and relative to other locations.”