Prime London flat prices up 11.8 per cent as professional and foreign buyers drive “market revival”

Research by London lettings and estate agent Benham and Reeves has revealed, that while the prime market is still struggling when it comes to house price growth, a return to normality has helped rejuvenate the price being paid for flats.

The analysis of London’s prime market looks at the average price paid for both flats and houses in London’s “most prestigious pockets” of the property market and how they have performed over the last year.

The figures show that the average price paid for a house has fallen by -5.2 per cent across the prime London market in the last year, now sitting at just over £3.343m.

This suggests that those in the market for a larger family home continue to look towards the peripherals of the capital and beyond in order to secure larger homes with a greater abundance of outdoor space.

However, with the capital returning to a full state of normality following the end of pandemic workplace restrictions, demand from professional and foreign buyers has once again started to climb.

In the last year, the average price paid for a flat across the prime London market has increased by 11.8 per cent on average, with the average flat now commanding £1.325m.

The area of St John’s Wood, Regents Park and Camden has enjoyed the largest rebound in property market values where flats are concerned, with the average price paid for an apartment increasing by 42.5 per cent annually.

Knightsbridge and Belgravia is not only home to the highest current average price for an apartment at £3.125m, but the area has also seen the second largest annual uplift in value at 41.5 per cent. The area of Kensington, Notting Hill and Holland Park ranks third, where the average price paid for a flat has climbed by 37.3 per cent in the last year.

In fact, just three areas have seen the price paid for a prime London apartment fall over the last year - Mayfair and St James’s (-10.8 per cent), Fitzrovia, Bloomsbury and Soho (-5.9 per cent) and Midtown, City and City Fringe (-2 per cent).

Director of Benham and Reeves, Marc von Grundherr, commented: “It’s fair to say that the London market has been ticking over and while property values haven’t appreciated at the same manic rates as the rest of the UK, it’s certainly been a slow but steady return to health following the pandemic.”

By Matthew Neville – Correspondent, Bdaily

• Add me on LinkedIn and Twitter to keep up to date
• And follow Bdaily on Facebook, Twitter and LinkedIn
• Submit press releases to editor@bdaily.co.uk for consideration.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →