Race for space costs primes sales in London: Coutts

Demand for super premium properties in London has hit an all-time high with sales of homes worth £10million or more jumping 90% in the past year, according to Coutts.

Sales rose to 106 last year from 56 in 2020, driven by sales of high-end properties in Kensington, Notting Hill and Holland Park, according to the private bank’s London Prime Property Index.

He adds: ‘Buyers have not been deterred by the 11% increase in the cost of these multi-million pound homes.

The last quarter of last year also saw a record number of prime properties changing hands, with 44 homes sold in the three-month period, compared to 23 in the last quarter of 2020.

The report says: “A market that hit the doldrums in 2020, with just six homes over £10million sold during the first lockdown, exploded with 44 homes sold in the final quarter of 2021 as buyers rushed to buy luxury real estate as the year drew to a close.

Coutts Managing Director Peter Flavel adds: “For many investors, these prime, prime properties offer 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 capitalizing on the opportunity to buy a house in a central London postcode because prices are lower than before.”

The survey says the situation was similar in the capital’s prime property market – homes worth £1million or more – with particularly high demand outside central London.

It says greener areas such as Richmond, Wandsworth and Islington have seen soaring prices as buyers seek more space away from central London. Prices rose nearly 11% in Wandsworth and 7% in Richmond.

This decision has reduced the gap between the prices of high-end real estate in the heart of the capital and its surroundings.

The index says the difference between a main residence in central London and other boroughs in the capital is 58%, down from 70% four years ago.
High-end property prices in historically expensive areas such as Knightsbridge and Belgravia are now 17% below their 2014 peak.

The survey adds: ‘The bubble could burst this year, however, with many UK estate agents predicting significant growth in the central London luxury property market this year.’

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