November London Housing Market Report

Highest price growth in prime fringe, but the greatest sales activity in prime central London.

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Homes under offer are down

The prime London market is not immune from the wider issues facing the housing market, with the number of homes under offer down 14.6% in November compared to the previous year, while sales were 4.8% lower.

Prices are rising

Prices are still rising, up 1.9% over the year to November.

Prime market differences (%)

Analysis of local markets shows higher price rises during 2022 in the lower value prime fringe London (5.2%), followed by prime inner (3.4%), with prime central – the most expensive market - recording the lowest price growth of all markets (2.5%).

Higher sales and smaller declines

The opposite is true in terms of sales with higher-priced local markets generally recording higher sales this year and smaller declines, if not rises, compared to last year.

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The post-pandemic market saw a resurgence with the number of sales in the first 11 months of 2022 consistently higher than 2019 across most local markets in prime London. the majority of local markets recorded much higher transactions, with Chelsea reporting the biggest increase at 40.6% with Kensington, Notting Hill and Holland Park not far behind at 37.1%.

The market with the highest growth was Marylebone at 12.7%, while the second highest was Knightsbridge & Belgravia at 9.3%. New build sales, priced at a premium to the local market lie behind these figures.

The local markets with higher prices and a larger share of transactions above £5 million have generally seen higher sales this year and smaller declines, if not rises, compared to last year. The post-pandemic market has seen improved sentiment at the top end of prime London, a market that had been struggling in the previous years. Existing owners have become more willing to sell while buyers have been encouraged by the recovery in global travel and potential savings thanks to the exchange rate. For example, 24% of sales in Mayfair & St James’s over the last two years have been above £5 million and sales this year were 16.9% higher than last year.

Source: Lonres