Research from London lettings and estate agent, Benham and Reeves, analysed the capital’s 28 most prestigious pockets of the property market and found that, on average, prime London homes are now commanding over £1.1m in the current market, up 10.3% in the last year alone. This equates to a total increase in value of £103,874 in just 12 months, meaning homeowners have seen an increase to the tune of £285 each and every single day over the last year.
Knightsbridge has seen the best performance in this respect. The average value of a home has climbed by 20.7% in the last year to just over £1.7m. As a result, homeowners in the neighbourhood have enjoyed an £808 daily rate of house price appreciation.
Chelsea is hot on the heels of Knightsbridge, where house prices have increased at £743 per day in the last year, now averaging just over £1.65m.
Prime homeowners in Victoria (+£575 per day) and St John’s Wood (+£510 per day) have enjoyed a daily increase of over £500, with Notting Hill also making the top five with an increase of £495 per day.
Other areas where house prices have seen the largest daily rate of increase include Kensington, Highgate, Fulham, Barnes and Chiswick.
In fact, just one area of the prime market has failed to yield a daily uplift in value. The average house price in Canary Wharf has actually declined by -1.8% in the last year. This £11,031 reduction in property values equates to a loss of £30 per day.
Marc von Grundherr, Director of Benham and Reeves, commented: “We’ve been highlighting the returning health of London’s top-tier property market for quite some time now and the proof of this return to form is very much in the pudding.
"Over the last year, property values have climbed almost across the board, with Canary Wharf being the only exception, and no doubt still thawing from the pandemic freeze that saw demand from professional buyers plummet.
"In the vast majority of neighbourhoods, we’re not just seeing incremental gains, we’re seeing some really quite notable increases in value. So much so, that the average homeowner is seeing the value of their property climb by hundreds of pounds a day.
"This has largely been driven by foreign demand, with travel restrictions and Covid protocols no longer complicating the process of purchasing a primary or secondary residence within the capital.”
