Demand rebounds for Prime London property

Big ticket buyers returned to the capital in the spring months, the Prime London Demand Index from London lettings and estate agent Benham and Reeves has revealed.

Between the first and second quarters there was a 1.8% uplift in ‘demand’ for homes between £2 and £10 million, which is calculated based on the proportion of homes listed for sale that have already been sold subject to contract.

Demand still lags -1.9% below the second quarter of 2024, which means there’s still potential for more buyers to come to market.

This year higher-priced London markets have been affected by a tightening of non-dom rules, as there is a 40% inheritance tax on non-doms’ global assets. In November the stamp duty surcharge on additional properties was also increased from 3% to 5%.

On the flipside the global instability in the Middle East, coupled with Donald Trump’s tariff trade wars, could drive more overseas buyers to invest in the capital’s sought-after property market.

Prime market (£2m to £10m)

Clapham returned to health in the second quarter of 2025, where demand rose from nothing to 36.9%, making it one of the busiest areas.

The second fastest growing region was also in South West London, as Wandsworth saw a 5.0% increase in demand quarter-on-quarter, bringing total demand to 31.8%.

The most in-demand area of all has been Chiswick, at 39.3%, followed by Putney, at 37.8%.

Demand dropped in multiple Central London areas, like Holland Park (-3.4%) and Pimlico (-3.1%), though it fell the most in Richmond (-10.2%) in the South West of the capital.

On an annual basis Wapping in East London has seen the biggest uplift in demand (18.5%).

Super prime market (£10m+)

In terms of the £10 million plus market, the highest demand area is Fitzrovia in Central London, at 25.0%.

This was followed by Victoria (15.6%), also in Central London, as well as Highgate (9.1%) in the North West of the city.

Demand fell off in areas like Wimbledon and Holland Park, where there were no sales for £10m plus in the second quarter.

Director of Benham and Reeves, Marc von Grundherr, commented:

“Prime London property buyers are still seeing value in the market, reflected by demand rising as we get into the warmer months of the year.

“South West London is most in-demand, where investors are likely seeing more value compared to the highly developed Central London market.

“Prime London is commonly seen as a safe haven to park cash in times of global uncertainty, so it remains to be seen if the market will build up more steam in the months ahead.”

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Breaking News

Working-age Britons, poorest households

Working-age Britons, poorest households and the North East are suffering most from substandard housing, new data shows Never before seen analysis of the latest English Housing Survey has exposed the staggering inequalities in the monetary and social cost of living in poor-quality homes. In the North East, households are paying five times more than those…
Read More
Breaking News

Deposit Size Could Make or Break Your Budget in 2025

Mind the Deposit Gap: Why Your Mortgage Deposit Could Make or Break Your Budget in 2025 As UK homeowners and buyers face rising costs and tight affordability, specialist lender Hodge Bank warns that the size of your mortgage deposit could now play an even bigger role in long-term financial wellbeing. Hodge is urging homeowners and…
Read More
Breaking News

Government continues to withhold Renters’ Rights Bill court impact study

Government continues to withhold Renters’ Rights Bill court impact study, citing policy ‘safe space’ despite ‘unacceptable’ court delays Reapit appeals decision. The government has again declined to publish its Justice Impact Test for the Renters’ Rights Bill, this time in response to a Freedom of Information request, citing the need to preserve a “safe space”…
Read More
Breaking News

Urban Property Values Outpace Coastal & Countryside Markets

City Living Resurgence as Urban House Prices Outpace Coastal and Countryside Markets The latest research from eXp UK has found that city living is firmly back in favour, with the nation’s major cities seeing a stronger average rate of house price growth compared to coastal and countryside locations. The research by eXp UK analysed the…
Read More
how to present your property for sale
Breaking News

This one property size has grown by almost 20% in the last five years

The latest research from over-50s property specialists, Regency Living, reveals that the average size of park homes in England has increased by almost 20% over the past five years, reflecting a growing demand for park homes as primary residences, not just holiday getaways. Regency Living has examined the five-year change in the average footprint of…
Read More
Breaking News

Renters see bigger increase in monthly payments than mortgaged homeowners over last three years – up £221 pcm

New analysis1 from Zoopla, one of the UK’s leading property websites, reveals that private renters have seen a greater increase in their monthly housing costs since 2022 than mortgaged homeowners. Average rents in the UK currently sit at £1,283 per month, with mortgage repayments for an average outstanding loan at £1,154 per month. Over the…
Read More