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Bective’s analysis of Land Registry sold price records dissects the market based on the number of transactions seen at £1m-£3m, £3m-£5m and £5m+ across each borough.
The research shows that across all segments of the prime market, 3,381 transactions have taken place during the first half of this year, accounting for 12% of all London property sales.
The Core Market - £1M-£3M
The core prime market has been the most active during the first six months of the year, accounting for 10.8% of the 28,210 homes sold across London so far this year.
With an average sold price of just over £1.3m, properties at this tier of the market are selling for 153% more than the London average.
Kensington and Chelsea has seen 197 transactions complete at this rung of the market, accounting for 39% of the 508 homes sold in the borough in 2021.
Hammersmith and Fulham (34%), Westminster (33%) and Camden (30%) have also seen 30% or more of homes sold in their respective boroughs do so for between £1m and £3m, while in Richmond and Islington a quarter of transactions sit within this price range.
The Mid-Market - £3M+ To £5M
Across the mid-prime market, 214 transactions have completed so far this year equating to just 0.8% of all London transactions. With an average sold price of £3.65m, this segment of the market comes in some 609% more expensive than the London average.
While Kensington sits top with 11% of all homes sold at this price threshold again, Westminster ranks second with 8% of all transactions completed in the borough between £3m to £5m.
With just 4% of the overall transactions taking place at this level of the prime market, Camden also places above Hammersmith and Fulham (2%).
The Prime Market - £M+
There have been just 117 homes sold over the £5m threshold so far in London this year, amounting to 0.4% of total transactions across the capital.
With an average sold price of £7.1m, the cost of purchasing within the prime market comes in at 1,279% higher than the average London home.
Only 12 out of the 32 boroughs have seen transactions at this price point this year, with just five boroughs seeing more than a handful of sales.
In Kensington and Chelsea, 54 homes have sold for more than £5m in 2021, accounting for 11% of all homes sold in this borough.
Westminster (6%) and Camden (2%) again rank high, along with Merton (0.4%) and Richmond (0.3%).
London Property Market Should See A Strong Finish To The Year
Bective Revenues Director, Craig Tonkin, commented:
“Unlike much of the UK, London’s top tier property market hasn’t been hit by the same level of homebuyer hysteria as a result of the stamp duty holiday. However, that’s not to say it hasn’t played a part and market activity in the first half of this year has certainly benefited.
However, looking forward we expect the return of international interest to play a far more pivotal role over the remainder of the year.
We’ve already seen buyer registrations from all corners increase by 81% in the last month alone which is an extremely positive indicator.
Property values across the likes of Kensington and Chelsea and Westminster are also some twenty to twenty-five per cent off previous market peaks so there is still a strong level of growth potential.
When coupled with the fact that interest rates remain at an all-time low, we should see a strong finish to the year across much of the London market.”
General Prime Market - £1M To £3M
|Location||All Transactions||Transctions between £1m & £3m||£1m to £3m as % of all||Average sold price - All||Average sold price - £1m to £3m||Price difference (%)|
|Kensington and Chelsea||508||197||39%||£1,200,000||£1,550,000||29%|
|Hammersmith and Fulham||612||209||34%||£757,500||£1,435,000||89%|
|City of Westminster||561||184||33%||£930,000||£1,366,250||47%|
|Richmond upon Thames||1,035||267||26%||£692,500||£1,350,000||95%|
|City of London||37||6||16%||£712,000||£1,121,300||57%|
|Kingston upon Thames||788||69||9%||£546,000||£1,200,000||120%|