A growing appetite amongst buyers for family homes is helping to drive London’s high value prime market, an agency claims.
Benham and Reeves analysed prime London property prices across 20 prime neighbourhoods to reveal which types of homes are most in demand amongst buyers based on house price performance over the past 12 months.
The London market as a whole has struggled this year, with prices falling by an average 1.1 per cent since late 2022.
The analysis shows that these cooling market conditions have also proved problematic for prime London sellers.
The average price paid for a three-bedroom house across the prime market has fallen by four per cent year on year, with two-bed and five-bed homes seeing smaller reductions of 2.7 and 2.4 per cent respectively. One-bed homes have remained largely static in price..
At the same time, the price paid for prime London studio flats is down 1.2 per cent annually, with one-bed flats also seeing a reduction of 3.5 per cent year on year. Two-bed flats have also remained largely static.
For those in search of a four-bed house in prime London, the Vauxhall, Nine Elms, Borough and Kennington neighbourhoods offer the most affordable foot onto the prime London property ladder, with an average house price of £965,071.
For those in search of a four-bed house in prime London, the Vauxhall, Nine Elms, Borough and Kennington neighbourhoods offer the most affordable foot onto the prime London property ladder, with an average house price of £965,071.
In contrast, a four-bed home in Knightsbridge and Belgravia comes in at an average of £5.5m 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 tag 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 £8.2m.
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 current landscape is no different when it comes to the prime London market. However, 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.
“Our previous research has shown that following the end of pandemic travel restrictions, the number of foreign buyers entering the London market has climbed. Many of them are relocating their entire families in the process and this increased demand has no doubt been a contributing factor to the strong price performance of family suitable homes within the prime London market.”
