London prime property sales resilient despite economic headwinds
London’s prime property market has remained stable year on year despite significant headwinds, according to a major real estate firm.
There were 93 sales above £5m in the first three months of the year, on par with the 92 in 2024, Savills found.
Overall values also held up, with total values for houses between £10m and £15m at £0.19bn, 64 per cent above the first quarter 2024 and 33 per cent above the first quarter of 2023.
“There remain plenty of reasons for the global ultra-high-net-worth community to hold a property in London… [it] remains a safe haven,” Nick Maud, director of research at Savills, said.
However, Maud added that the marker may face turbulence in the coming months, with buying power limited by “volatility in the global stock market”.
“Agents on the ground are reporting much tougher market conditions for new vendors,” he said.
London property sales above £5m
Despite the better-than-expected sales figures, there are still signs that the government’s non-dom policy and VAT changes have affected the market.
Savills found that growth has been driven by demand for ‘lock up and leave’ pied-a-terres, with domestic buyers rather than international buyers hoovering up properties.
“We’re experiencing a return of the domestic pied-a-terre buyer who was notably absent during the pandemic and for the period following,“ Alex Christian, co-head of Savills Private Office, said.
“Buyers are largely focused on securing long-term family homes,” he added.
The idea of international buyers acquiring properties for investment purposes seems to have been dented by an array of government policies designed to extract more tax income from those with the ‘broadest shoulders’.
International buyers have instead turned to renting luxury serviced apartment buildings providing 5-star hotel style amenities.
Average rental values of prime central London flats are now 11.3 per cent higher than they were a year ago.