London’s £5 Million-Plus Home Market Saw Robust Sales in the Second Quarter

London’s high-end property was resilient in the second quarter of the year, despite facing uncertainty in the form of a general election, according to a report Monday from Savills. 

There were 120 sales at £5 million (US$6.45 million) and up across the capital between the start of April and the end of June. Though that’s a 15% drop in deals compared to the same time last year, it’s up from the 92 sales recorded in the first quarter and a “significant” 38% higher than the pre-pandemic average for the second quarter of the year, the property firm said. 

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“We would expect the combination of changes to the existing non-doms regime, and pre-election caution, to cause more buyers to sit on the fence while they wait for further clarity. But a continued desire for first-class property has meant that market activity remains stronger than before the pandemic,” said Frances McDonald, director of residential research at Savills. 

Belgravia was a hot spot among wealthy buyers, with 15% of the second quarter’s £5 million-plus sales taking place in the posh neighborhood. The traditional prime areas of Kensington (with 14% of sales), Mayfair (11%) and Chelsea (10%) followed. 

“Despite the highly discretionary nature of the top-end of London’s prime market, it’s very promising to see continued momentum from buyers to secure an address in one of the capital’s prime postcodes,” McDonald said.

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The £10 million-and-up market also remained “remarkably strong” in the second quarter, the report said. 

There were 38 sales for homes of at least £10 million across London, down 10% compared to the same period last year, but a 58% quarterly increase and an 18% increase over pre-pandemic levels.

Driving transactions in this segment of the market was a cohesion between buyers and sellers. 

“Greater buyer and vendor alignment on price, particularly at the top end of the prime market, has meant we have seen a flurry of deals above £10 million over the past three months,” said Alex Christian, co-head of Savills Private Office. “Activity is strongest in pockets of the market where vendors are prepared to be pragmatic on price in order to sell.”