Brexit vote sees London’s prime market slow even further with almost ‘no’ buyer demand

Leading hybrid estate agent, eMoov.co.uk, has released its latest prime central London property hotspots index for Q3 charting demand levels across London’s most prestigious locations.

eMoov’s Prime Central London Property Index records the change in supply and demand for property above £1m across London’s most prestigious areas, by monitoring the total number of properties sold in comparison to those on sale.

Although the wider UK market is yet to suffer any detrimental Brexit impact, it seems London’s £1m+ property market is feeling the strain of the decision to leave the EU. The latest figures for London’s high-end market post-Brexit show that demand has fallen by -10 per cent, now at just 9 per cent on average. This is the lowest level on record and a further drop since demand cooled following April’s changes to stamp duty for buy-to-let and second homes purchases.

The five areas of prime central London where demand is at its lowest are Mayfair (3 per cent), St Johns Wood (4 per cent), Knightsbridge (4 per cent), Belgravia (4 per cent) and Fitzrovia (5 per cent).

In addition, a notable 75 per cent of London’s most prestigious locations have seen demand remain static or drop since Q2. In fact, the only places to have seen a positive uplift in demand for property over the last three months are Holland Park (+44 per cent), Marylebone (+38 per cent), Notting Hill (+17 per cent) and Primrose Hill (+9 per cent).

Notting Hill is also fourth hottest where demand levels are concerned, currently at 14 per cent. With Belsize Park enjoying the highest demand across the PCL landscape (18 per cent), followed by Islington (17 per cent), Chiswick (15 per cent) and Holland Park (13 per cent) completing the top five.

Founder and CEO of eMoov.co.uk, Russell Quirk, commented:

“Yet more bad news for prime central London homeowners, with the Brexit vote seemingly putting the boot in while they’re down after the market took a bit of a kicking due to April’s stamp duty changes.

“This was always likely to happen as these areas of London rely heavily on high-end foreign investment and second home visitors to survive. Whilst the rest of the UK market seems to be ticking along with little impact as of yet, the immediate weakening of the sterling and negative response from the rest of the EU seems to have had an instantaneous knock-on effect on the prime central London market.”

Location

Property Demand

Q2Q Change

Belsize Park

18%

-5%

Islington

17%

-19%

Chiswick

15%

-17%

Notting Hill

14%

+17%

Holland Park

13%

+44%

Primrose Hill

12%

+9%

Maida Vale

11%

-31%

Marylebone

11%

38%

Fulham

9%

0%

Kensington

7%

0%

Chelsea

6%

-25%

Fitzrovia

5%

-38%

Belgravia

4%

-43%

Knightsbridge

4%

-43%

St Johns Wood

4%

0%

Mayfair

3%

-25%

Average

9%

-10%