Kensington tops list of prime London oversupply, but gardens still drive buyer demand
Kensington is currently the most oversupplied area of prime London, giving investors the best chance of negotiating a deal.
That’s the view of investment banking service Jefferies London which says the borough has over 2,200 homes listed for sale, accounting for 20% of all prime central London sales stock.
The company analysed current market listings across each prime central London borough, revealing over 11,000 homes for sale at the top end of the London market.
Chelsea follows with 12% of stock, while both Marylebone and Notting Hill each account for 10%.
By contrast, the most exclusive enclaves remain highly restricted – Regent’s Park representing just 2% of all listings, while Fitzrovia, Victoria, and Mayfair each account for only 3%. Holland Park has just 5%.
This comes against a backdrop of sluggish performance across the prime London market in recent times.
Despite wider improvements in the UK housing market, prime central house price growth has remained subdued and transaction levels have been slow, reflecting both affordability pressures and a more cautious pool of international buyers.
Further analysis by Jefferies London has shown that when it comes to the prime property homes with gardens remain the most in-demand feature across prime central locations.
In Kensington, where stock levels are highest, demand for homes with gardens is also stronger than for other features, with 12.6% of listed properties attracting buyers compared to 11.5% for balconies and 11.2% for parking. This suggests that while buyers may have more choice in the current market, outdoor space remains the defining factor in where demand is directed.
Damien Jefferies, founder of Jefferies London, comments: “The prime London market has undoubtedly been slower to recover compared to the wider capital, and we’re now seeing an oversupply of stock in key neighbourhoods such as Kensington and Chelsea, as returning buyer demand levels simply haven’t matched that of those looking to sell.
“For buyers, this represents an opportunity to secure a better price in areas that usually come with far less choice and higher asking prices.
“In a market that remains selective and price sensitive, these lifestyle-led features are often what determines whether a property sells or sits on the shelf.”
