Demand is down across the prime London market (£2m-£10m) both on a quarterly and annual basis, according to the latest Prime Central London Buyer Demand Index by Benham and Reeves.

However, the data also revealed that the super-prime threshold of £10m-plus has seen an increase in buyer demand in the fourth quarter of 2022.

The index – based on the ratio of properties listed online that have already sold subject to contract or gone under offer – showed that buyer demand saw a decline in the fourth quarter of 2022, falling by 4.1% to 21.4%, thus marking an annual decline of 5.7%.
Chiswick (51.7%), Wimbledon (44.9%) and Islington (38%) are home to the current highest demand for prime properties. In terms of quarterly change, however, St John’s Wood has seen the strongest growth at 5.4%, followed by Regents Park (5%), Islington (4.1%), Holland Park (2.7%), and Marylebone (1%).

The largest quarterly decline in demand for prime london property has been recorded in Barnes, where it has dropped by 29.7% in the past three months, followed by Wandsworth (-26.7%), Canary Wharf (-13.1%), Highgate (-11%) and Clapham (-8.6%).

On an annual basis, St John’s Wood has seen its popularity grow the most, with a prime demand increase of 3.2%. In Maida Vale, demand is up 3%, while Wapping (2.8%), Chiswick (1.7%), Regents Park (1.6%) and Marylebone (1.6%) have all recorded slight increases. The largest annual declines have been recorded in Wandsworth (-28.9%), Putney (-24.9%) and Clapham (-24.7%).

On the back of two quarters of growth, the super-prime market once again saw demand increase by 9.1% on a quarterly basis to currently sit at 16.3%. This brought up the annual rate of growth to 7.1%.

Wimbledon is the hottest spot in London’s super-prime market, with current demand at 93%, followed by Pimlico (66.7%) and Fitzrovia (20%). Wimbledon has also recorded the largest quarterly increase (68%), followed by Pimlico (66.7%) and Fitzrovia (20%).

The biggest quarterly drops have come in Highgate (-16.7%), Hampstead Garden (-7.7%) and Belgravia (-5%). In terms of annual demand change, the best performing areas of London are again Pimlico (66.7%), Wimbledon (26.3%) and Fitzrovia (20%). The worst annual drops have come in Highgate (-22.2%), Kensington (-7.4%) and Knightsbridge (-6.8%).

Marc von Grundherr, director of Benham and Reeves, commented: “While demand may be down overall, we’re still seeing those who are looking to buy act with serious intent when doing so and pouncing on what is currently a very good market if you are a buyer.

“The super-prime market is also seeing an uplift in activity and this is down to the fact that this segment of the market is based very much on quality over quantity and far less susceptible to a drop in market activity. It is also being driven by a rejuvenated level of foreign buyer demand, with these buyers far less concerned about the increased cost of borrowing, as it remains far more favourable when compared to their domestic markets.”