London property market analysis reveals stall in homebuyer market

London’s latest property market analysis has shown that homebuyer demand across London’s prime market has fallen during the first quarter of this year, although demand across the core prime market of £2m to £10m remains higher than this time last year.

The PCL Homebuyer Demand Index by London letting and estate agent, Benham and Reeves monitors demand for homes valued between £2 - £10m and £10m and above based on the ratio of properties listed online that have already sold subject to contract or gone under offer.

Marc von Grundherr, director of Benham and Reeves, commented: “Take a temperature test of any property market segment during the first quarter of the year and you’re likely to discover it finding its feet after the Christmas break, so a decline in demand so early in the year is certainly no cause for panic.

“What will be telling is how the market reacts going forward under the extraordinarily unique circumstances we currently find ourselves in with the Ukraine conflict.

“While the sanctions against Russia only impact a relatively small pocket of the market, the prime market is one that very much operates on quality over quantity.

“So even if a handful of properties go up for sale, it’s likely to saturate the market in some of capital’s most prestigious neighbourhoods and this is sure to have some impact on the price paid for these properties.”

While Wapping has seen the largest quarterly increase at 13 per cent, the pandemic influence continues to impact the market with the prime south west areas of Battersea (9 per cent) and Clapham (+6 per cent) also enjoying some the largest increase in buyer demand when compared to the final quarter of 2021.

However, there are clear signs that previous, pandemic induced trends, are also starting to reverse. Having previously seen demand evaporate during much of the pandemic, Canary Wharf has enjoyed the fourth largest quarterly increase with demand up +6 per cent, followed by Maida Vale (+3 per cent).

At the very top end of the London market, demand sits at just 4 per cent on average having fallen -5 per cent quarterly.