London’s £5m-plus property market saw a surge in activity in the final quarter of 2024, following a slower first nine months of the year, according to analysis from Savills.
A total of 128 sales above £5m took place in the last three months of 2024, marking a 25% rise on the previous quarter and an 8% increase on the year. However, overall transactions for 2024 totalled 442, down 16% year-on-year.
The value of sales in Q4 2024 reached £1.59bn, up 50% on Q3 (£1.06bn) and 26% higher than the same period in 2023 (£1.26bn). The average price paid for a £5m-plus property hit £11.04m in Q4, the highest level recorded since 2019.
Nick Maud, director of research at Savills, said: “The cautious mentality that we observed ahead of this summer’s general election and the Autumn Budget began to unwind during the final couple of months of 2024. A combination of political uncertainty and the additional stamp duty surcharge for second homes and changes in non-doms taxation announced in the Budget has meant that it has not been plain sailing for prime London buyers and sellers this year. But the bounce in activity towards the end of the year is a testament to the resilience of this market, and the strength of appetite from domestic buyers.”
The late-year uptick was driven by sales above £10m, highlighting continued demand for high-value assets in London’s most sought-after locations. Prices in Prime Central London remain 20% below their peak, with Savills forecasting a 9.6% increase over the next five years.
Belgravia overtakes Chelsea in £5m-plus sales
Belgravia accounted for the highest proportion of £5m-plus sales in 2024 (13%), surpassing Chelsea, which had held the top spot since 2020. Kensington and Mayfair remained among the most popular locations for super-prime buyers.
Houses made up the highest proportion of £5m-plus sales since 2021 (63%), reflecting continued strong demand from domestic buyers.
The last three months of 2024 also saw the highest number of new build sales above £5m in over a year, with 24 transactions in Q4, up from 35 in Q3. However, new build sales for the full year reached their lowest proportion of total transactions since 2011.
Alex Christian, co-head of Savills Private Office, said: “Our prime agency and development teams had one the strongest ends to a year in recent times, exchanging on the sale of five deals totalling over £120m during the final ten days of December. The buyers were acting with renewed confidence, having assessed how the changes in the Budget would affect them and wanting to take advantage of an increased appetite by pragmatic vendors to finalise deals before the year-end. This is a testament to the enduring appeal of London, but also the lack of quality housing stock available across prime postcodes.”
Ed Lewis, Savills head of super prime residential development, added: “Traditional prime London neighbourhoods continue to be most sought after by high-end buyers. Belgravia, in particular, has benefited from a surge of demand from a younger demographic thanks to significant investment into the area and an evolved retail and restaurant offering.
“However, planning restrictions mean there will be fewer larger lateral apartments coming through the pipeline, so there is a shrinking opportunity to secure this kind of home. The demand for turn-key, high spec properties continues and buyers are urged to act quickly in 2025, particularly while London prices offer value for buyers in historical terms.”
