Buyers are seemingly turning to cheaper London homes amid a shrinking pound, despite a “rejuvenated level of foreign interest”.
Demand for London homes worth more than £10m has fallen consistently in the first half of the year, while London’s prime market, of homes valued between £2m and £10m, has enjoyed an uptick.
According to research from city real estate firm Benham & Reeves, demand in London’s super prime real estate market has dwindled by one per cent and is down nearly two per cent in comparison with this time last year.
While demand in the prime market lifted by 0.2 per cent in the latest quarter, representing a 2.4 per cent jump on an annual basis.
However, a turnaround in favour of pricier homes could be on the horizon, Benham & Reeves director Mark von Grundherr said today.
“A weak pound now means that many foreign buyers are benefitting from a dramatic boost in purchasing power and while this is bad news for the wider economy, it could see prime London sales start to climb over the coming months,” he explained.
Wimbledon is the most popular spot for trophy home hunting, followed by Highgate and Belgravia in the second quarter of this year.
Meanwhile, Holland Park, Regents Park and St John’s Wood have recorded the largest increases in demand.