"Our data shows that we’re still very much in a buyer’s market with significant value available for those looking to purchase a prime property in the capital"
- Katherine O’Shea - Coutts
Those wanting to purchase a million-pound home for ‘less’ have benefitted as ‘prime’ property prices in the capital dropped by 2.3% in the last quarter, according to the latest research from Coutts.
Average discounts also rose to 8.6% – up from 7.7% the previous quarter – and 79% of sales were below the asking price, according to the latest research from Coutts’ London Prime Property Index, which analyses the city’s prime property market area-by-area.
Across prime London, the volume of properties available on the open market increased by 8% annually signalling more good news for buyers.
Costs of high-end homes
Prime property in some central London postcodes sold at very low prices compared to historic levels, with the price of homes in Knightsbridge & Belgravia, Mayfair & St James’s and South Kensington still 23.1%, 23.7% and 15.7% below the height of the market in 2014 respectively.
The ‘race for space’ previously seen in the capital during Covid continued to reverse this quarter, with house prices in areas slightly outside the centre of London seeing a decrease. For example prices in Hampstead & Highgate peaked in Q2 2023 and have since fallen by 17%, prices in Wimbledon, Richmond, Putney & Barnes peaked in Q4 2023 and have since fallen by 12.5%.
Pockets of strong activity
Transaction volumes were up across the capital over the last quarter, with particularly strong activity in certain key areas.
For example, in Bayswater & Maida Vale, sales volumes were up 58.7% from the last quarter, 52.1% annually and 33.2% compared to the 10-year average.
In St John’s Wood, Regent’s Park & Primrose Hill sales volumes were up 50% quarter-on-quarter, 50% annually and 31.4% compared to the 10-year average.
And lastly, in Kensington, Notting Hill & Holland Park sales volumes are up 8.5% compared to last quarter, 21.4% annually and 14.9% compared to the 10-year average
Sales rise as mortgage market improves
Sales volumes rose by 7.2% compared to the previous quarter and were up 14% on the 10-year average, driven mainly by homes in the £2 million to £5 million price bracket.
Whilst the number of new prime properties being put up for sale fell by 14% compared to the previous quarter, this is not unusual for quarter three activity as the volume of new properties coming onto the market over the summer tends to decrease.
Katherine O’Shea, Coutts Real Estate Director, commented: “Our data shows that we’re still very much in a buyer’s market with significant value available for those looking to purchase a prime property in the capital, particularly in areas such as Mayfair and South Kensington – which now appear ‘cheaper’ compared to previous prices in the area.
“Whilst buyers also benefited from an increase in properties coming onto the market, our clients are telling us that it can be challenging trying to find “best-in-class” homes and that many are sold privately or pre-marketed to buying agents. This is where Coutts can help by connecting clients to buying agents to make sure they don’t miss out on their dream home.”
