MortgagesAug 3 2017

Property demand picks up in prime central London

Search sponsored by
Property demand picks up in prime central London

Prime central London (PCL) property is showing signs of recovery following two years of decline, according to research by emoov.

Demand levels across the city  – the percentage of properties sold compared to those listed - are running at 13 per cent on average, up by 25 per cent in the past six months and 39 per cent year-on-year.

Chiswick is currently seeing the highest level of demand (32 per cent), followed by Islington (25 per cent) and Camden’s Belsize Park (18 per cent).

Knightsbridge has enjoyed the largest rise in demand, with a 184 per cent increase since January coming on the back of a disappointing end to 2016.

It also saw the biggest annual increase (184 per cent), followed by Chiswick (113 per cent) and Fitzrovia (111 per cent).

Maida Vale was the worst-performing borough, witnessing drops in demand of 32 per cent since the start of the year and 38 per cent annually.

RankLocationCurrent Demand
3rdBelsize Park18%
4thPrimrose Hill14%
5thNotting Hill13%
8thHolland Park11%
14thSt Johns Wood8%
15thMaida Vale7%

In May, Hometrack revealed the most expensive parts of London had witnessed year-on-year price falls of up to 5 per cent, while London Central Portfolio (LCP) recently reported a 41 per cent drop in sales so far this year.

But following the General Election, LCP also said the prime market could become more attractive for foreign investors due to the fall in sterling. 

Founder and CEO of Russell Quirk said: “Finally, some good news for London's high-end homeowners who have seen their property potential decrease substantially over the last two years. 

“Despite many fearing the worst for London's high-end market post-Brexit, the previous chancellor sucker punching the prime market with repeated stamp duty blows, and with election uncertainty still hanging thick in the air, many areas of prime central London have performed better than the capital as a whole, a reversal of previous trends for sure.”

Tony Silver, director at London-based White House Mortgages, said he didn’t believe there had been a significant decline in the PCL market.

“I am having the best year for a long time, and I have got more work than I can cope with – and I am a small broker,” he added.

“It depends who you ask. If you talk to Foxtons, they will probably tell you life is buoyant. London is a market in itself. Buy-to-let is strong, and London is very strong.”