Prime London’s £5 million-plus market resilient despite some caution
London’s £5 million-plus residential market remained resilient over the second quarter of 2024. Transactions remain significantly stronger than pre-pandemic levels, despite the highly discretionary nature of this part of the market.
There have been a total of 120 £5 million-plus second hand and new build sales across London in Q2 2024 with a total value of £1.27 billion. This means volumes are up by 38% on the pre-pandemic average for the second quarter of the year, though they fell by -15% compared to Q2 2023.
Similarly, for the £10 million-plus market there were 38 sales across London in Q2 2024, 18% up on pre-pandemic levels but -10% down on Q2 2023.
The combination of changes to the existing non-doms regime and pre-election caution did cause some buyers to sit on the fence, but a continued desire from those looking to secure an address in one of the capital’s most prestigious postcodes has meant top-end sales remain 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 by any changes to non-doms taxation continue to weigh up their options.
What are the trends behind the data
Looking at the first six months of the year as a whole, the greatest proportion (15%) of £5 million-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 addresses in Kensington (14%), Mayfair (11%) and Chelsea (10%) closely followed.
In keeping with more domestic demand, £5 million-plus house sales made up a significant proportion of activity (64%) during the first half of 2024, with the highest number of house sales taking place in Kensington and Chelsea, both well-known for their larger family houses.
Outlook
While much remains to be seen in terms of specific policies and proposals from the new government, sentiment is likely to improve now that the results of the general election are known.
Across central London, some may remain cautious ahead of Labour’s first fiscal event, but buyers are continuing to recognise the value on offer, both in a historical context and relative to other prime locations around the world.