When it comes to the current London property landscape, the £1m-plus market is not only home to the highest level of market activity, but also the strongest homebuyer demand, research by Benham and Reeves has revealed.
Benham and Reeves analysed property listings, amount of sale stock, and buyer demand, across the capital at each price threshold.
Previous research by Benham and Reeves found that so far this year, 3,716 properties have sold for £1m or more across London, equating to 21.1% of total sales completed across the capital.
The latest research further highlighted the strength of the £1m-plus market across the capital at present, with this level of the market accounting for both the highest levels of buyer demand and available for sale stock.
There were 19,116 properties listed for sale across London at £1m or more, accounting for 19% of total market stock within the capital, and 85% of all stock listed at £1m or more across the entire UK.
Just the £400,000 to £499,999 price bracket came close, accounting for 16% of total market stock, followed by homes listed for £300,000 to £399,999 at 14%.
Homes listed for less than £100,000 in London made up just 1% of current for sale stock.
The majority (77%) of homes listed for sale at £1m or more across London were either marked as under offer or sold subject to contract.
In contrast, the lowest demand was for homes priced at £400,000 to £499,999, with 59% of available listings already marked as under offer or sold subject to contract.
Buyer demand was stronger across the UK as a whole at every price bracket, apart from homes priced at £800,000 or more, demonstrating that the top end of the market is currently driving London’s property market.
Marc von Grundherr, director of Benham and Reeves, said: “When it comes to current market performance, it’s clear that London is being driven by the one million pound plus market at present, as not only is demand highest at this price threshold, but so too is the level of stock making its way to the market.
“It’s no different in the rental market either, with homes commanding £1,000 per week an upwards seeing a very high level of tenant demand at present.
“That’s not to say that there isn’t a good level of stock at other price thresholds, or demand for that matter.
“However, the lower tiers of the market are certainly more susceptible to the uncertainty of the current economic landscape, as well as the increased cost of buying driven by increasing mortgage rates in recent times.”
