Transactions and prices drop in London’s prime postcodes

October 7, 2019

The latest research from leading independent lettings and estate agent, Benham and Reeves, has looked at the current state of the prime London market, the number of transactions and average sold prices by postcode in the first six months of the year, and how this differs from the same period last year.

Using data from the Land Registry, Benham and Reeves dissected the prime London market to analyse the change in market movement on a granular level, looking at the most sought after postcodes for London’s high-end buyers over £2m, based on the number of homes sold and what they’re selling for.

The data shows that the number of prime London transactions in the first six months of this year has dipped by -7% when compared to the same period the previous year, as market uncertainty continues to take hold.

The average sold price being secured by high-end sellers in the first half of this year sits at £3.9m, a -16% drop year on year.

Sold Prices

The highest sold prices so far this year has been the W1J postcode in Mayfair with properties selling for an average of £11.5m. Nearby W1K is also amongst the highest at £8.7m, while W9 covering parts of Maida Vale comes in third at £5.9m.

W1K has also seen the largest increase in sold prices year on year, up 84%.

Transactions

When it comes to the number of homes being sold in London’s high-end market, W8 covering much of Kensington is the most in-demand amongst buyers so far in 2019. The postcode has seen a total of 77 transactions in the first six months of the year with an average sold price of £4.9m.

SW3 in Chelsea is the next hottest spot for prime London homebuyers with a total of 64 transactions in the first half of 2019, followed by W11 in Kensington (56), NW3 in Hampstead (56) and W2 in Bayswater (48).

While transaction levels remain below this time last year, there are pockets to have seen a notable uplift. N5 in Highbury has seen transactions increase by 200% increase year on year, albeit due to a relatively low number of sales transacting.

Nearby N7 in Islington and W1S covering parts of Mayfair have seen transactions increase by 100%, while SW19 and N2 have seen the next largest increases at 89% and 78% respectively.

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

“We’ve seen the top end of the market suffer due to the implementation of new stamp duty penalties for those buying a second home or buy-to-let investment. When you couple this with the political uncertainty that is currently plaguing the market, is it any wonder that transactions have fallen?

However, the prime market has always been about quality over quantity and at the very highest rungs we may only be seeing a few transactions every six months, but these levels are building on this time last year. This demonstrates the underlying confidence that remains in the London market when even some of the highest house price transactions are taking place despite wider influences.

The current climate also represents a great opportunity for foreign investors and while many domestic buyers are sitting on their hands, we’re seeing a consistent interest from investors across Asia and beyond, who recognize now is a very good time to buy.

The drop we’ve seen in asking prices in many areas is enough to off-set the additional stamp duty costs and with London remaining the pinnacle of ownership for many foreign investors, why wouldn’t you build it out your portfolio discounted cost?

With the current political unrest in Hong Kong, we’re also seeing a particular increase in the number of investors from the region, who are deciding to pull their money out now and are looking to the capital as a ‘safe haven’, This speaks volumes about the current confidence of investing in the capital despite our own current political turmoil and bodes very well for life after Brexit.”

Highest Average Sold Price in 2019
Outcode
London Area
PCL Area
Average Sold Price
W1J
MAYFAIR
Prime Central
£11,585,735
W1K
MAYFAIR
Prime Central
£8,714,667
W9
MAIDA VALE
Prime Central
£5,909,167
W1S
MAYFAIR
Prime Central
£5,605,007
SW1W
KNIGHTSBRIDGE & BELGRAVIA
Prime Central
£5,428,643
SW1X
KNIGHTSBRIDGE & BELGRAVIA
Prime Central
£5,339,826
W11
KENSINGTON, NOTTING HILL & HOLLAND PARK
Prime Central
£5,112,614
W8
KENSINGTON
Prime Central
£4,983,763
NW8
ST JOHN’S WOOD
Prime Central
£4,872,728
SW3
CHELSEA
Prime Central
£4,869,718
Largest Increase in Average Sold Price Year on Year
Outcode
London Area
PCL Area
Annual Change
W1K
MAYFAIR
Prime Central
84%
W9
MAIDA VALE
Prime Central
84%
SW13
WIMBLEDON, RICHMOND, PUTNEY & BARNES
Prime South West
44%
W1T
MARYLEBONE, FITZROVIA & SOHO
Prime Central
37%
W1J
MAYFAIR
Prime Central
36%
N5
HIGHBURY
Prime North London
32%
W14
KENSINGTON, NOTTING HILL & HOLLAND PARK
Prime Central
31%
NW8
ST JOHN’S WOOD
Prime Central
22%
N7
TUFNELL PARK
Prime North London
20%
W1H
MARYLEBONE, FITZROVIA & SOHO
Prime Central
14%
Highest Number of Transactions in 2019
Outcode
London Area
PCL Area
Transactions
W8
KENSINGTON
Prime Central
77
SW3
CHELSEA
Prime Central
64
W11
KENSINGTON, NOTTING HILL & HOLLAND PARK
Prime Central
56
NW3
HAMPSTEAD, HIGHGATE
Prime North West London
56
W2
BAYSWATER & MAIDA VALE
Prime Central
48
SW7
SOUTH KENSINGTON
Prime Central
47
NW8
ST JOHN’S WOOD
Prime Central
46
SW6
FULHAM & EARL’S COURT
Prime Central
43
SW19
WIMBLEDON, RICHMOND, PUTNEY & BARNES
Prime South West
36
SW1X
KNIGHTSBRIDGE & BELGRAVIA
Prime Central
33
Largest Increase in Transactions Year on Year
Outcode
London Area
PCL Area
Annual Change
N5
HIGHBURY
Prime North London
200%
N7
TUFNELL PARK
Prime North London
100%
W1S
MAYFAIR
Prime Central
100%
SW19
WIMBLEDON, RICHMOND, PUTNEY & BARNES
Prime South West
89%
N2
HAMPSTEAD GARDEN SUBURB, HIGHGATE
Prime North West London
78%
W11
KENSINGTON, NOTTING HILL & HOLLAND PARK
Prime Central
75%
SW1V
PIMLICO, WESTMINSTER & VICTORIA
Prime Central
50%
NW3
HAMPSTEAD, HIGHGATE
Prime North West London
40%
SW18
BATTERSEA, CLAPHAM & WANDSWORTH
Prime South West
38%
W1W
MARYLEBONE, FITZROVIA & SOHO
Prime Central
38%
All data is based on properties sold at £2m and above. Current data is taken between January-June 2019, while the year on year comparison is January-June 2018.
Source: Land Registry Price Paid Data

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