London’s Prime Property Hotspots in 2020 (Despite Covid)
Despite Covid wreaking havoc across all aspects of life, including the property market, London house prices still managed to climb – although some areas, and some price brackets, faired much better than others…
Lead image: Barnes, London (photo: Ali Donald / iStock / Getty Images Plus
Last year was shaky on all front, but it takes a lot to knock London’s property market off course, and some areas of the capital still flourished in terms of property prices.
The latest research by estate agent Benham and Reeves revealed which tiers of the high-end London property market were most in demand in the final quarter of 2020, and which areas became London’s property hotspots.
Benham and Reeves analysed market demand based on the number of homes sold as a percentage of all homes for sale across London’s prime neighbourhoods, and across various price thresholds.
The research shows that demand across London’s £10m-plus market stalled in the final quarter of 2020, with demand falling -0.3% to 6% overall.
However, this wasn’t the case across the rest of the prime London market, and despite the ongoing uncertainty caused by Covid, homebuyer demand has started to climb again.
Demand for all homes above £2m climbed by a total of 2% in the final quarter of 2020, while demand for homes in the £2m to £5m price threshold was up 3.7% between Q3 and Q4.
However, it’s the £5m to £10m segment of the market that has seen the largest buyer interest increase. In Q4, demand for homes at this price threshold climbed by 4.8% compared to the previous quarter.
Outer areas of London with more green space continue to register the highest interest, however, so Covid is still a concern among buyers.
London’s top 10 Prime property hotspots
The highest ranking areas for current London buyer demand above £2m are as follows:
Barnes (47%*) Chiswick (43%) Clapham (43%) Richmond (36%) Wandsworth (34%) Wimbledon (32%) Putney (29%) Islington (29%) Highgate (27%) Holland Park (18%) (*Percentage shows current buyer demand for homes at £2m and above, based on the number of property listings marked as under offer or sold subject to contract in a particular area, or at a certain price bracket, as a percentage of all properties listed. Data sourced from Rightmove and Zoopla in Dec 2020)
Holland Park is the only prime central area to make the top 10, with demand currently at 18%. With Covid continuing change the way we work and our ability to commute, it comes as no surprise that Canary Wharf is the least in-demand location, with demand at just 2.4%.
‘A combination of the stamp duty holiday and an incoming increase to stamp duty for foreign buyers caused buyer demand across London’s high-end market to largely stabilise during the final quarter of 2020,’ said Marc von Grundherr, Director of Benham and Reeves.
‘Covid continues to prove a significant influence where buyer preference is concerned, with many continuing to favour outer London locations’
‘All but the very top tiers of the market enjoyed a boost in market activity despite the broader turbulence that remained due to the current pandemic.
‘That said, Covid continues to prove a significant influence where buyer preference is concerned, with many continuing to favour outer locations that provide the opportunity for a bigger home and more green space.
‘While this is likely to continue this year, the growing availability of a vaccine should spur a return to normality of sorts. As it does, we expect to see demand across London’s more central prime neighbourhoods start to return as the capital begins to reopen both professionally and from a social standpoint.’
5 of the best in Barnes
Five of the best properties for sale within the £2m-£5m price bracket:
The best of the rest
The rest of the in-demand areas of London for homes above £2m, outside of the top 10:
11. Notting Hill (17%) 12. Knightsbridge (15%) 13. Fulham (15%) 14. Maida Vale (15%) 15. Battersea (15% 16. Kensington (14%) 17. Chelsea (13%) 18. St John’s Wood (13%) 19. Victoria (12%) 20. Wapping (11%) 21. Hampstead Garden Suburb (11%) 22. Mayfair (10%) 23. Belgravia (10%) 24. Pimlico (9%) 25. Regents Park (9%) 26. Fitzrovia (7%) 27. Marylebone (4%) 28. Canary Wharf (2%) (*Percentage shows current buyer demand for homes at £2m and above, based on the number of property listings marked as under offer or sold subject to contract in a particular area, or at a certain price bracket, as a percentage of all properties listed. Data sourced from Rightmove and Zoopla in Dec 2020)