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Demand rises in prime London housing market as Covid continues to influence buyer location

The number of homebuyers looking to buy property in prime London locations climbed during the fourth quarter of last year, according to new data.

Research by lettings and estate agent Benham and Reeves revealed that demand for all homes above £2m ($1.5m) climbed by a total of 2% in the final quarter of 2020, while demand for homes in the £2m to £5m price threshold was up 3.7% between the third and fourth quarters of last year.

The £5m to £10m segment of the market recorded the largest buyer interest increase during the period, with demand for homes at this price threshold climbing by 4.8% compared to the previous three months.

However, the research showed that demand across London’s £10m+ market stalled in the final quarter of 2020, with demand falling -0.3% to 6% overall.

The data analysed market demand based on the number of homes sold as a percentage of all properties for sale across London’s prime neighbourhoods and across various price thresholds. Demand was sourced from property listings across Zoopla and Rightmove in December 2020.

Despite growing market activity levels, COVID-19 is still a concern amongst buyers, with outer areas in the capital with more green space continuing to register the highest interest.

READ MORE: How the new lockdown may help the UK housing market in the short term

The 5 top-ranking areas of London were Barnes (47%), Chiswick (43%), Clapham (43%), Richmond (36%), Wandsworth (34%), with Wimbledon (32%), Putney (29%), Islington (29%) and Highgate (27%) following behind. These all ranked as the most in-demand areas for current London buyer demand above the price of £2m.

Holland Park is the only prime central area to make the top 10 with demand currently at 18%.

In contrast business district Canary Wharf was the least in-demand location at just 2.4%. Read from source….