A patchwork of pockets emerges in London’s prime property market

Published on

The prime property market in London has become increasingly fragmented, with significant differences in selling times and price reductions across postcodes, according to new findings from Investec Bank.

The latest analysis highlights that while some £1m+ homes are selling within three months, others remain on the market for more than six. Alongside these disparities, prime properties in Greater London have seen average price reductions of over £200,000, with some areas experiencing declines of more than £300,000.

VARIATIONS IN SELLING TIMES ACROSS LONDON

The time taken to sell a £1m+ home varies significantly depending on location. In Bayswater (W2), properties take an average of 191 days to sell, while in Hampstead (NW3), sales complete in just 79 days.

South West London offers the most choice for buyers, with the highest number of £1m+ homes on the market. However, the length of time properties remain unsold varies widely:

AVERAGE TIME ON MARKET FOR £1M+ HOMES
Postcode Average Days to Sell
W2 (Bayswater) 191
NW8 (St John’s Wood) 149
SW3 (Chelsea) 130
W8 (Kensington) 128
W11 (Notting Hill) 114
SW11 (Battersea) 97
SW6 (Fulham) 87
NW3 (Hampstead) 79

 

While the average price reduction for £1m+ homes in Greater London was £200,100, some areas saw far greater discounts. Hampstead (NW3) recorded the largest percentage drop of 11.3%, equating to a reduction of £305,220, while Chelsea (SW3) and Kensington (W8) both saw price cuts of over £300,000.

AVERAGE PRICE REDUCTION FOR £1M+ HOMES (BY % DISCOUNT)
Postcode Reduction (£) Reduction (%)
NW3 (Hampstead) £305,220 -11.30%
W2 (Bayswater) £261,081 -10.50%
SW3 (Chelsea) £311,266 -9.70%
W8 (Kensington) £313,245 -9.20%
NW8 (St John’s Wood) £325,219 -8.40%
SW11 (Battersea) £153,723 -8.20%
W11 (Notting Hill) £228,417 -7.70%
SW6 (Fulham) £150,709 -7.35%
PRICE DISPARITIES ON A PER SQUARE FOOT BASIS

London’s prime market also exhibits sharp differences in pricing per square foot, with some buyers able to make substantial savings by adjusting their search to neighbouring postcodes. Fulham (SW6) was found to be £779 per square foot cheaper than Chelsea (SW3), despite being just a short distance away.

AVERAGE PRICE PER SQUARE FOOT OF £1M+ HOMES
Postcode Price per Sq Ft (£)
SW3 (Chelsea) £1,934
W8 (Kensington) £1,863
W2 (Bayswater) £1,745
W11 (Notting Hill) £1,692
NW8 (St John’s Wood) £1,516
NW3 (Hampstead) £1,349
SW11 (Battersea) £1,255
SW6 (Fulham) £1,155
OPPORTUNITIES FOR BUYERS AND SELLERS

Carlos Mendes, private banker at Investec, said: “London offers exceptional value for money for those willing to look just a few roads away from their target postcodes, with prime property often hundreds of pounds cheaper per square foot.

“Now is the time for buyers to take advantage of some significant price reductions and secure a prime property in some of London’s most desirable areas, with reductions of over £300,000 seen in certain postcodes. However, for sellers, it’s essential to recognise that not all areas move at the same pace, and pricing strategies need to be flexible to secure a sale.”

A MARKET IN FLUX

London’s prime property market remains a patchwork of micro-markets, each moving at its own pace. For buyers, opportunities exist to secure significant savings by expanding their search beyond their preferred postcodes. For sellers, navigating the evolving landscape requires a strategic approach to pricing, ensuring properties remain competitive in a challenging market.

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Newcastle for Intermediaries adds three-year fix range to mortgage offering

Newcastle for Intermediaries has introduced a new range of three-year fixed rate products. It said...

Mortgage product availability surpasses 25,000 for the first time

The number of mortgage products available in the UK has reached an all-time high,...

ASG Finance launches loan for HNW investors

ASG Finance has introduced its latest funding initiative: the ‘Base Rate Beater’ secured investment...

Other news

Why it matters that bridging hit more than £10bn last year

We see many numbers bandied around in the financial industry, which can sometimes have...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Newcastle for Intermediaries adds three-year fix range to mortgage offering

Newcastle for Intermediaries has introduced a new range of three-year fixed rate products. It said...