The latest research by London lettings and estate agent, Benham and Reeves, has found that demand for homes listed at £10m and above across London’s prime suburbs has tumbled to just 2%, with a number of areas seeing no demand for housing at all.
Benham and Reeves looked at prime London’s property hotspots and the demand for homes listed at £2-5m, £5-10m and £10m, to see how the current pandemic is impacting homeowner appetite for London’s priciest properties.
It found that at the lower end of the capital’s prime property market at £2m-£5m, demand remains fairly robust at 15% on average.
Richmond is the most in-demand of all prime London locations at this price bracket, with 40% of all homes listed still under offer or SSTC despite the spread of the Coronavirus. Barnes (38%), Clapham (32%), Wimbledon (29%) and Chiswick (28%) are also amongst the most popular.
Moving up a price bracket to £5m-£10m, demand drops to 10%, however, it said there remains a number of areas where homebuyer activity remains robust. Again, Barnes (56%), Wimbledon (33%) and Richmond (25%) remain popular, joined by Pimilcio (19%).
However, at this price bracket demand for housing is currently non-existent in Fitzrovia, Marylebone, Maida Vale, Regents Park, Canary Wharf, Battersea, Wandsworth and Chiswick.
Benham and Reeves found that It is the super-prime threshold that has seen homebuyer demand take the biggest hit.
With demand as a whole at just 2%, there are a total of 13 areas where demand sits at 0%, with a further seven areas where no homes are listed above this threshold. Highgate is the most in-demand at 8%, along with Notting Hill (6%), Knightsbridge (5%), Mayfair (4%) and Chelsea (2%).
Director of Benham and Reeves, Marc von Grundherr, said: “In times of crisis, the UK property market relies upon factors of necessity amongst home movers such as death, divorce and employment patterns. However, the present situation is preventing all but the most committed buyers from transacting and this is no different in the prime and super-prime echelons of the London market.
“In theory, current conditions should suit the capital’s super-wealthy as this area of the market has always been about quality over quantity, private sales and the purchase of homes that lay empty and ready to be lived in.”
He added: “But the spread of the coronavirus is having a big impact on buyer sentiment and this is remarkably evident in areas where there is currently no buyer demand at all; a phenomenon rarely seen in a market as popular as London.”