Area of prime London “suffers from outdated buildings” – warning

Area of prime London “suffers from outdated buildings” – warning


Todays other news
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
The first one is in Manchester - but will the...
Grainger is selling its low-yield stock and pinning its hope...

London’s ultra-prime housing market for multi-millionaire and billionaire buyers dropped by 25% in unit sales and 34% by value of property sold during 2024. And one area is described as having “a large supply of outdated apartment buildings and period properties.”

The data comes from a survey by high-end agency Beauchamp Estates which says that last year’s 40 sales for luxury properties priced over £15m in 2024 (£856.5m of sales in total), compares to 54 sales in 2023 (worth £1.3 billion).

It puts the fall in the super-prime market down to a combination of Stamp Duty rises, changes to the Non-Dom regime, the UK General Election and the new Labour government.

The latest year-end 2024 edition of the annual Billionaire Buyers in London survey by Beauchamp Estates looked at sales of luxury residential properties valued over £15m between January and December 2024, compared to 2023, analysing deals data from LonRes, combined with the agency’s own in-house deals data and local market intelligence. 

Beauchamp Estates says that the sales market for homes valued above £15m in London during 2024 was driven by younger international buyers, aged from their late 20s to mid 40s, who due to their youth can take a long-term view on investing in the capital’s real estate.

These younger buyers prefer dressed “turn-key” homes and purchase either newly built lateral apartments or houses that have had a major refurbishment. As a result, the London market for second-hand luxury homes, especially those requiring some refurbishment, significantly reduced during 2024.   

During 2024 there were 10 sales of super-luxury new-build London apartments priced over £15m, worth £212.7 million, compared to 19 sales worth £385m in 2023. The apartments sold during 2024 averaged 4,260 square feet in size, each costing an average of £4,766 per square foot (the premium price underlining their new build status). In 2023 the apartments sold were larger at 5,810 square feet, averaging £4,306 per square foot in value.

Beauchamp Estates says that the drop in apartment sales during 2024 was due to a combination of a current lack of supply of new build homes in favoured addresses such as Mayfair and the “stop, start” nature of the London sales market during 2024 generated by Stamp Duty rises, the General Election, the Autumn Budget and announced changes to the Non-Dom tax regime. 

During 2024 American buyers accounted for 25% of all super-prime sales, up from 18% in 2023, the largest buyer group by country of origin, followed by buyers from the Middle East, who accounted for 20% of all sales, up from 18%. 

The proportion of super-prime sales to buyers from the UK fell from 12% to 10% between 2023 and 2024, likewise for buyers from Eastern Europe (13% to 8%), the dramatic drop due to the ongoing Russia-Ukraine war, Western European buyers (6% to 5%) and buyers from India/South Asia (23% to 20%). Only buyers from China and Hong Kong grew in number, up from 10% to 12%.

During 2024 there were significant winners and losers amongst London’s most sought after addresses. 

The biggest winner was Mayfair, which accounted for nine of the 40 £15m-plus deals (up from eight deals in 2023), including a £60m off market deal and a series of £20m-plus deals for homes in the new apartment buildings in Grosvenor Square, such as One Grosvenor Square, and the Clarges Mayfair apartments overlooking Green Park.

The agency says Mayfair is now the “address of choice” in London for the world’s super-rich, with American, Middle East and Indian/South Asian buyers drawn to the fashionable restaurants of Mount Street, the boutiques of Bond Street and the new luxury apartment buildings. It recently sold an £8m penthouse in Mayfair to an American buyer and early in 2024 an £11.5m duplex residence on Charles Street to an American family,.

Other favoured addresses in 2024 included Kensington, with five deals – down from seven in 2023 – and Notting Hill, with three deals, up from two in 2023. 

The biggest loser in 2024 was Knightsbridge, with just two ultra-prime deals, down from eight in 2023. The agency claims that Knightsbridge now suffers from a large supply of outdated apartment buildings and period properties which require refurbishment. The age of many of the apartment buildings also means that they generate high maintenance charges, which also deters buyers. 

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Property Investor Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
From the ninth floor upwards the flats are open market...
Will Non Doms quit the UK if the government changes...
London’s £5m-plus market picked up in Q4 2024 after a...
The rental property brings in some £7,000 a year...
Spain’s draconian new tax is already spooking British investors...
The Budget has forced a revision of forecasts for the...
Prices and sales volumes will grow in 2025 despite the...
Recommended for you
Latest Features
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
Sponsored Content
As the property industry shifts towards sustainable practices, Inspired Property...
Are you concerned about rising interest rates and their potential...
In the ever-evolving landscape of property investment, staying ahead of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here