During the first quarter of 2024, London saw 89 sales of homes priced over £5 million, which totalled £918 million in value. This was a 20% decrease from the previous year’s first quarter, but still 44% higher than the first quarter of 2019, which had 62 such sales.
In the year leading up to the first quarter of 2024, there were 504 sales of homes above £5 million—352 between £5 and £10 million, and 152 above £10 million.
Frances McDonald, a research director at Savills, notes that while the beginning of the year is usually slower for the high-end market, the current pace is less brisk than the surge seen following the pandemic. Contributing factors to this slowdown include a reduction in available properties, economic uncertainties, and concerns around the upcoming election which typically dampen the high-end market.
McDonald also points out the government’s move to end the non-doms tax regime has led some international buyers to hold off on purchases while they figure out the effects of these tax changes. This year has therefore seen more transactions conducted by domestic and necessity-driven buyers.
Domestic Purchases of High-End Houses Rise
Houses represented 61% of the £5 million-plus home sales in the first quarter of 2024, which is the highest since early 2021. This represents an increase from the previous year and the year before that.
Mayfair witnessed the highest number of these transactions at 15%, claiming the top spot for the first time since 2020. Traditional prime locations, including Mayfair, Belgravia, Chelsea, and Kensington, made up over half of these high-value sales.
Despite the abundance of high-profile global buyers, Alex Christian, co-head of Savills Private Office, has observed a prominent rise in domestic buyers, boosting house sales particularly in areas like Hampstead, St Johns Wood, and Kensington.
With an upcoming General Election, the expectation of a government change appears to be factored into current market prices, according to Christian. Buyers remain price-conscious and are waiting to see how new policies might affect the market.
Even amidst political anticipation, there is still a consistent flow of interest, especially from buyers in India, the Middle East, and America. High-quality homes that are priced appropriately continue to attract strong prices, underscoring the importance of product quality and pricing in today’s market.
