Much like the broader UK market, the London market as a whole has struggled this year, as higher mortgage rates cause homebuyer activity to decline across the capital
Buyer appetite for family homes is helping to drive the prime London market, according to a new analysis from London estate agent Benham and Reeves.
This market segment has otherwise seen property values underperform across the board over the last year
Benham and Reeves analysed prime London property prices across 20 prime neighbourhoods to unveil which types of homes are most in demand amongst London’s high-end homebuyers based on house price performance over the last year.
Much like the broader UK market, the London market as a whole has struggled this year, as higher mortgage rates caused homebuyer activity to decline across the capital.
In fact, the average London house prices has dropped by -1.1 per cent on an annual basis, jumping to a reduction of -1.6 per cent across inner London particularly.
The research by Benham and Reeves shows that these cooling market conditions have also proved difficult for prime London sellers.
Nevertheless, not every area of the prime London market is struggling and, in fact, two property types have seen strong rates of annual house price growth. The average price paid for a three-bed+ flat is 1.4 per cent higher, while four-bed houses have jumped by 3.7 per cent, suggesting that strong demand remains from buyers in search of family suitable homes.
For those in search of a four-bed house in prime London, the neighbourhoods of Vauxhall, Nine Elms, Borough & Kennington offer the most affordable foot onto the prime London property ladder, with an average house price of £965,071.
In comparison, a four-bed home in Knightsbridge and Belgravia comes in at an average of £5.5 million in the current market.
For those looking for a family suitable flat with three bedrooms or more, Canary Wharf and the Docklands boast the most affordable price in the current prime market at an average of £687,333, while Mayfair and St James’s is home to the most expensive price tag at an average of £8.2 million.
Benham and Reeves director Marc von Grundherr says: Much like the rest of the UK, London house prices have largely underperformed this year and the present landscape is no different when it comes to the prime London market.
Grundherr adds: Nevertheless, while annual price growth is down pretty much across the board, there remains a strong market for family suitable homes at the very top tier of the London market.