Pre-Election Jitters Hit £5m Plus Market in London

London's top-end sector continues to slow from its post-pandemic record high, reports Abode2. A total of 89 £5mn-plus homes with a combined value of £918mn changed hands across London in the first three months of the year, according to new all-market analysis.

Comparing the figures with those of previous years however, Savills noted volumes were - 20% below Q1 2023, but 44% up on the 62 sales recorded in Q1 2019.

On a rolling annual basis, there were 504 £5mn-plus sales recorded in the year to Q1 2024, with 352 between £5mn and £10mn, and 152 above the £10mn mark.

The agency said lower levels of stock, a weaker economic backdrop, and pre-election jitters has all contributed to the slowdown, while moves to end the non-dom tax regime had had an impact on international demand; as such, domestic and needs-based buyers have been playing a key role, in particular bolstering sales of houses.

Houses accounted for three in every five £5mn-plus transactions in Q1 2024, the highest proportion since the pandemic “race for space” in Q1 2021 (this year’s figure of 61% compared to 58% in Q1 2023 and 56% in Q1 2022).

Drilling down to neighbourhood-level, Mayfair has accounted for the lion’s share of the £5mn-plus action this year (15%), overtaking Chelsea for the number one spot for the first time since 2020. Traditional prime postcodes (Mayfair, Belgravia, Chelsea and Kensington) still account for over half (52%) sales at this price point, said the firm.