London’s Luxury House Hunters Have a Collective £36.8 Billion to Spend

London’s super-prime property market, with demand for its most luxurious homes soaring and its buyers with billions of pounds in their collective pockets to spend, is on the road to recovery, according to a report Monday from Knight Frank. 

Following a rocky Covid-induced slump that saw the property market effectively shutdown amid the pandemic, purchasers with a combined budget of £36.8 billion (US$51.2 billion) are now actively searching for super-prime homes in London—a jump of 54% compared to the five-year average—according to the latest data from the estate agency and property consultant. 

“The London super-prime market is seeing a surge of interest,” Liam Bailey, Knight Frank’s global head of research, said in the report, which defines super-prime as homes priced in excess of £10 million. “A combination of lockdown easing, a rapidly growing economy, sharply improved business sentiment, and a sense that city living is being reignited after a long close-down is helping to drive buyers.”

In the six months to the end of April, buyers parted with £817.4 million across 45 super-prime deals in London, a 21% jump from the £677.9 million that was spent on 43 high-end properties in the city during the preceding six months.

“While the figure represents a growth in new demand from new U.K. and international buyers, there is also a growth in demand from existing luxury home owners looking to buy a new, bigger, better, super-prime home to improve and expand their London base, as a response to Covid’s impact on their lifestyle,” Mr. Bailey added.

The most in-demand neighborhood of the past 12 months was posh Kensington, where 18.6% of super-prime deals took place; Knightsbridge and Mayfair rounded out the top three. 

Outside of London’s prime market, the average U.K. asking price hit a record high for the third consecutive month in June, reaching £336,073, according to the latest price index released Monday from Rightmove. 

Despite the record, the feverish U.K. property market—bolstered by tax breaks, lifestyle changes, and a desire for more square footage and outdoor space—looks to be showing early signs of cooling, the online property portal said. 

Compared to last month, prices rose just 0.8% in June, a much smaller rise than the 1.8% monthly increase recorded in May, and the 2.1% increase logged in April.

Article Source: Mansion Global