Prime London bucks wider emerging trend and remains a buyers market

“It remains very much a buyer’s market at the top end of the London property ladder, with many areas still seeing values sit below that of a year ago”
– Marc von Grundherr – Benham and Reeves

The latest research from London lettings and estate agent, Benham and Reeves, has revealed which areas of the prime London market are leading the charge when it comes to the highest rate of annual house price growth, as the average price achieved per square foot remains down -2.7% across the top tier of the capital’s market as a whole.

Benham and Reeves analysed house price data from LonRes, looking at the average price achieved per square foot across each area of the prime market in Q2 of this year and how this compares to the previous year.

According to the analysis, the average prime London home is currently commanding £1,150 per square foot, -2.7% down versus a year ago. Mayfair and St James’s remain the most expensive pocket of the prime London market at £2,147 per square foot, despite having seen a -4.6% annual drop.

However, it’s the area of Bayswater and Maida Vale that is driving market performance when it comes to positive prime London house price growth, with the average value per square foot climbing 10.1% in the last year alone.

The area of Hammersmith, Brook Green, Chiswick and North Kensington has also seen strong growth of 6.8% year on year, with Battersea, Clapham and Wandsworth ranking third at 4.1%.

Just three other areas have seen positive annual movement – Pimlico, Westminster and Victoria (3.7%), St John’s Wood, Regent Park and Camden (1.6%) and Canary Wharf and Docklands (0.6%).

Director of Benham and Reeves, Marc von Grundherr, commented: “Generally speaking we’re now seeing market momentum tip back in favour of home sellers, as buyers return to the market in numbers and house prices start to climb. However, this isn’t quite the case across the prime London market where any change in market dynamics tends to take a while longer due to the far higher price of property.

“As a result, it remains very much a buyer’s market at the top end of the London property ladder, with many areas still seeing values sit below that of a year ago. We are starting to see the tide turn though and there have been a handful of neighbourhoods to have registered very healthy growth in the last 12 months.”