Demand for super prime properties in the capital reached a record high in 2021 with sales of homes worth £10 million or more increasing by 90% in the last twelve months.
Sales jumped from 56 in 2020 to 106 in 2021, the hotspot for the number of properties selling was Kensington, Notting Hill and Holland Park. Buyers were undeterred by the 11 per cent increase in the cost of these multi-million-pound homes.
These latest numbers come from the regular review of the market – the Coutts London Prime Property Index (CLPPI) – which reveals overall trends and what’s happening area-by-area across the capital.
The last quarter of 2021 saw the most prime properties sold since the Index has started, with 44 homes sold in quarter four, up from 23 in 2020.
A market that hit the doldrums in 2020, with only six £10 million plus homes sold during the first lockdown, has sky-rocketed with 44 homes sold in the last quarter of 2021 as buyers rushed to snap up luxury real estate as the year drew to a close.
Peter Flavel, CEO, Coutts, says, “The phrase ‘safe as houses’ has never rung more true as high-end buyers are keen to take advantage of bricks and mortar investments across the capital.
“For many investors these prime and super prime properties provide the opportunity to put funds into assets that offer the space they need as hybrid living continues to influence lifestyle choices. For others it’s about capitalising on the opportunity to scoop up a home in a central London postcode as prices are lower than before.”
The picture was similar across the prime property market – those worth £1 million or more – with demand particularly high outside of central London
Greener areas including Richmond, Wandsworth and Islington saw a spike in prices as buyers flocked away from the centre looking for more space. Prices increased by almost 11 percent in Wandsworth and seven per cent in Richmond, with homeowners seeking out ‘London village’ surroundings.
Conversely, this has narrowed the difference in prime property prices between the heart of the capital and its surrounding areas. Standing at 70 per cent four years ago, the difference is now 58 per cent with prime property prices in historically expensive areas such as Knightsbridge and Belgravia now 17 per cent below their peak in 2014
The bubble may burst this year however, with many UK property agents predicting significant growth in central London’s luxury housing market this year.