LONDON
PROPERTY MARKET CONTINUES TO
BOUNCE BACK
MOVING ON UP ↓
SUPER PRIME SALES SURGE ↓
THE MARKET IN NUMBERS ↓
INTERACTIVE MAP & POSTCODE ↓
5.2%
Annual price growth for prime London
36.6%
Percentage of high-end homes sold at a discount
-6.6%
The average discount on asking price
London’s property market continues to bounce back
High-end house prices are rising and discounts are dropping in the capital.
5.2%
Annual price growth for prime London
36.6%
Percentage of high-end homes sold at a discount
-6.6%
The average discount on asking price
MOVING ON UP
Chapter 01
MOVING ON UP
Property worth £1 million or more in London continues to make a comeback as the world adjusts to life alongside the coronavirus pandemic – with house prices up and discounts down.
Prices have risen particularly well in areas outside central London, such as Richmond, Wandsworth and Islington, as we see a ‘race for space’ brought on by the pandemic.
This has created an opportunity for those looking to buy centrally as some areas are currently pretty cheap compared to historic levels. Prices in Knightsbridge & Belgravia, for example, are 17 per cent below their peak in 2014.
That may not last though, with many UK property agents predicting significant growth in central London’s luxury housing market this year.
Peter Flavel, CEO, Coutts, says, “The market for properties worth £1 million or more in London is well and truly on the rebound, having been in the doldrums over recent years. Prices are up, with new records set in some areas, and the amount buyers are getting off the asking price is dropping.
“Kensington, Notting Hill and Holland Park have been the most active in the over £10m price bracket, while King's Cross and Islington have seen rises of 12 per cent over the last 12 months.”
He adds, “The pandemic has forced many to rethink what they want. Clients are looking for more space, a bigger garden, and a home office. To get all that, many have been forced to move out a little further, and the resulting demand in those areas has caused prices to shoot up.”
Considering your next move? Let Coutts help
Our real estate team could help you find the perfect property. And our bespoke mortgage service means we could provide a mortgage that’s as unique as you are.
Book an appointment
Or contact your private banker to find out how we could help you.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Over 18s only. Credit is subject to status and approval. Think carefully before securing other debts against your home.
CHAPTER 01
MOVING ON UP
Property worth £1 million or more in London continues to make a comeback as the world adjusts to life alongside the coronavirus pandemic – with house prices up and discounts down.
Prices have risen particularly well in areas outside central London, such as Richmond, Wandsworth and Islington, as we see a ‘race for space’ brought on by the pandemic.
This has created an opportunity for those looking to buy centrally as some areas are currently pretty cheap compared to historic levels. Prices in Knightsbridge & Belgravia, for example, are 17 per cent below their peak in 2014.
That may not last though, with many UK property agents predicting significant growth in central London’s luxury housing market this year.
Peter Flavel, CEO, Coutts, says, “The market for properties worth £1 million or more in London is well and truly on the rebound, having been in the doldrums over recent years. Prices are up, with new records set in some areas, and the amount buyers are getting off the asking price is dropping.
“Kensington, Notting Hill and Holland Park have been the most active in the over £10m price bracket, while King's Cross and Islington have seen rises of 12 per cent over the last 12 months.”
He adds, “The pandemic has forced many to rethink what they want. Clients are looking for more space, a bigger garden, and a home office. To get all that, many have been forced to move out a little further, and the resulting demand in those areas has caused prices to shoot up.”
Source: Coutts/LonRes
CLPPI: 105. (January 2022)
Considering your next move? Let Coutts help
Our real estate team could help you find the perfect property. And our bespoke mortgage service means we could provide a mortgage that’s as unique as you are.
Book an appointment
Or contact your private banker to find out how we could help you.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Over 18s only. Credit is subject to status and approval. Think carefully before securing other debts against your home.
CHAPTER 02
SUPER PRIME SALES SURGE
Meanwhile, the market for super prime properties – those worth £10 million or more – has skyrocketed.
Sales have doubled in 2021 compared to the previous year, and from October to December we saw the highest number sold in any three-month period since 2016.
Katherine O’Shea, Director, Coutts Real Estate Investment Service, says, “There appears to be a sense of opportunity as super prime buyers take advantage of a central London market that’s had pretty stagnant growth for a number of years.
“For many investors there’s a desire to put funds into assets they can enjoy; for others it’s simply about investing in real assets that appear cheap compared to historic prices.”
Data for Q4 2021. Source: Coutts/LonRes
(January 2022)
SW1 was the most active postcode for super prime sales in Q4 2021
There has been a 76% increase in super prime sales in Q4 2021 compared to the same period a year ago
It’s taking 110 days to sell a super prime property on average – that’s 35 days faster than properties worth £1 million or more
SW1 was the most active postcode for super prime sales in Q4 2021
There has been a 76% increase in super prime sales in Q4 2021 compared to the same period a year ago
It’s taking 110 days to sell a super prime property on average – that’s 35 days faster than properties worth £1 million or more
CHAPTER 03
THE MARKET IN NUMBERS
The latest numbers and analysis on luxury London property come from our regular review of the market – the Coutts London Prime Property Index (CLPPI) – which reveals overall trends and what’s happening area-by-area (see below).
Key highlights for the last three months of 2021 include:
- prime property prices increased 3 per cent, which brings annual house price growth to 5 per cent – driven mainly by outer prime London markets
- prices are still low historically though – currently 8 per cent below what they were when the market peaked in 2014
- super prime (£10m+) property prices have risen 11 per cent in the last year
- over a third of high-end London property is being sold at a discount but buyers are getting less off the asking price – around 7 per cent compared to 8 per cent the previous year, and 13 per cent three years ago
- the number of properties available for sale has dropped – down 17 per cent on the previous year – and new listings are down 12 per cent
- the difference in price between central London and other parts of the capital has shrunk dramatically – four years ago central property prices were over 70 per cent more expensive than outer prime markets, now they’re roughly 58 per cent pricier
CHAPTER 04
pick a postcode
YOUR VERY OWN DETAILED BREAKDOWN OF THE MARKET AREA BY AREA
Map shows the average quarterly sales price per square foot (£) and the annual change (%)
PICK A POSTCODE
YOUR VERY OWN DETAILED BREAKDOWN OF THE MARKET AREA BY AREA
Map shows the average quarterly sales price per square foot (£) and the annual change (%)
Hampstead & Highgate
With 18 per cent fewer properties for sale here and 15 per cent fewer new listings, buyers have limited options.
-6.8%
Annual sales volume growth
-6.6%
Average discount
3.2%
Annual gross rental yield
-6.8%
Annual sales volume growth
-6.6%
Average discount
3.2%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £948 | -0.5% | 186 | 39 | -6.9% | 28 | -15.2% |
| £1m - £10m | £1,168 | 3.8% | 149 | 35 | -6.6% | 41 | -6.8% |
| £10m+ | £2,347 | -1.2% | 21 | 2 | -14.3% | 4 | 100% |
| Source: lonres | |||||||
st john's wood, regent's park and primrose hill
Prices here have hit new records, now £1,495 per square foot on average. Overall, prime property prices are up 13 per cent over the last year.
-7.0%
Annual sales volume growth
-8.1%
Average discount
3.1%
Annual gross rental yield
-7.0%
Annual sales volume growth
-8.1%
Average discount
3.1%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £936 | -1.4% | 172 | 44 | -7.5% | 39 | -15.2% |
| £1m - £10m | £1,497 | 13.3% | 122 | 37 | -8.1% | 53 | -7.0% |
| £10m+ | £2,414 | -16.5% | 115 | 1 | -6.8% | 3 | 200% |
| source: lonres | |||||||
King's Cross & Islington
Prices here have hit new records, now £1,089 per square foot on average. Overall, prime property prices are up 12 per cent over the last year.
38.1%
Annual sales volume growth
-4%
Average discount
3.9%
Annual gross rental yield
38.1%
Annual sales volume growth
-4.0%
Average discount
3.9%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £856 | 1.0% | 153 | 51 | -3.8% | 18 | -50.0% |
| £1m - £10m | £1,089 | 12.3% | 166 | 31 | -4.0% | 29 | 38.1% |
| £10m+ | n/a | n/a | n/a | 0 | n/a | 0 | N/A |
| source: lonres | |||||||
Marylebone, Fitzrovia & Soho
Buyers here are negotiating the biggest discounts in the market, on average 9 per cent off the asking price.
18.2%
Annual sales volume growth
-9.2%
Average discount
3.1%
Annual gross rental yield
18.2%
Annual sales volume growth
-9.2%
Average discount
3.1%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £1,178 | -7.3% | 176 | 38 | -7.2% | 26 | -16.1% |
| £1m - £10m | £1,700 | 8.3% | 176 | 51 | -9.2% | 65 | 18.2% |
| £10m+ | n/a | n/a | - | 2 | - | 1 | n/a |
| source: lonres | |||||||
Mayfair & St James's
Eight super prime properties were sold here in the last quarter of 2021, making it the second most active market for homes worth £10 million or more in London.
-63.3%
Annual sales volume growth
-7.0%
Average discount
2.7%
Annual gross rental yield
-63.3%
Annual sales volume growth
-7.0%
Average discount
2.7%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £1,589 | 27.3% | 195 | 5 | -9.4% | 4 | 0.0% |
| £1m - £10m | £2,139 | -3.9% | 176 | 17 | -7.0% | 11 | -63.3% |
| £10m+ | £3,464 | 24.0% | - | 1 | -19.6% | 8 | 166.7% |
| source: lonres | |||||||
Knightsbridge & Belgravia
Despite a 0.7 per cent increase over the past year, values here are 16 per cent below what they were at the height of the market in 2014.
30.0%
Annual sales volume growth
-5.9%
Average discount
3.0%
Annual gross rental yield
30.0%
Annual sales volume growth
-5.9%
Average discount
3.0%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £1,210 | -12.1% | 314 | 8 | -13.4% | 7 | -50.0% |
| £1m - £10m | £1,978 | 0.7% | 163 | 33 | -5.9% | 52 | 30.0% |
| £10m+ | £2,864 | -6.8% | 119 | 1 | -4.8% | 7 | 40.0% |
| source: lonres | |||||||
pimlico, westminster & victoria
Despite a 3 per cent increase in annual prices, values here are 15 per cent below the height of the market in 2014.
4.0%
Annual sales volume growth
-8.1%
Average discount
3.7%
Annual gross rental yield
4.0%
Annual sales volume growth
-8.1%
Average discount
3.7%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £1,027 | -2.0% | 179 | 50 | -10.1% | 31 | -20.5% |
| £1m - £10m | £1,168 | 2.8% | 154 | 35 | -8.1% | 26 | 4.0% |
| £10m+ | n/a | n/a | N/A | 0 | n/a | 0 | N/A |
| source: lonres | |||||||
wimbledon, richmond, putney & barnes
Prime property prices here have hit new records, now £854 per square foot on average. Overall, luxury house prices are up 7 per cent over the last year.
9.3%
Annual sales volume growth
-3.3%
Average discount
3.8%
Annual gross rental yield
9.3%
Annual gross rental yield
-3.3%
Annual sales volume growth
3.8%
Average discount
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £703 | -3.0% | 153 | 115 | -5.3% | 71 | -43.7% |
| £1m - £10m | £854 | 7.1% | 132 | 33 | -3.3% | 47 | 9.3% |
| £10m+ | n/a | n/a | n/a | 0 | n/a | 0 | n/a |
| source: lonres | |||||||
Battersea, Clapham and Wandsworth
Prices here have hit new records, now £919 per square foot on average. Overall, prime property prices are up 8 per cent over the last year.
-45.6%
Annual sales volume growth
-3.0%
Average discount
4.0%
Annual gross rental yield
-45.6%
Annual sales volume growth
-3.0%
Average discount
4.0%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £769 | -0.1% | 175 | 153 | -5.8% | 110 | -42.1% |
| £1m - £10m | £919 | 7.8% | 122 | 56 | -3.0% | 37 | -45.6% |
| £10m+ | n/a | n/a | n/a | 0 | n/a | 0 | n/a |
| Source: LonRes | |||||||
Fulham & Earl's Court
Over 40 per cent of property sold here changed hands at a discount, with buyers on average negotiating 7 per cent off the asking price.
6.1%
Annual sales volume growth
-7.5%
Average discount
3.6%
Annual gross rental yield
6.1%
Annual sales volume growth
-7.5%
Average discount
3.6%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £854 | -7.3% | 175 | 98 | -8.6% | 83 | -27.2% |
| £1m - £10m | £1,079 | 2.8% | 138 | 74 | -7.5% | 87 | 6.1% |
| £10m+ | n/a | n/a | 78 | 0 | n/a | 1 | n/a |
| Source: lonres | |||||||
Chelsea
Property prices here are cheap relative to historic valuations. They are 16 per cent below what they were at the height of the market in 2014.
2.5%
Annual sales volume growth
-6.4%
Average discount
2.8%
Annual gross rental yield
2.5%
Annual sales volume growth
-6.4%
Average discount
2.8%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £1,208 | -0.5% | 159 | 49 | -7.0% | 41 | -14.6% |
| £1m - £10m | £1,620 | -3.1% | 143 | 73 | -6.4% | 82 | 2.5% |
| £10m+ | £3,049 | -11.6% | 101 | 3 | -9.8% | 4 | 100.0% |
| Source: lonres | |||||||
Hammersmith & Chiswick
Buyers here are negotiating the smallest discounts in the market, getting 3 per cent off the asking price on average.
-8.3%
Annual sales volume growth
-2.7%
Average discount
3.8%
Annual gross rental yield
-8.3%
Annual sales volume growth
-2.7%
Average discount
3.8%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £789 | 0.0% | 161 | 64 | -6.8% | 36 | -21.7% |
| £1m - £10m | £931 | 3.9% | 147 | 34 | -2.7% | 33 | -8.3% |
| £10m+ | n/a | n/a | n/a | 0 | n/a | 0 | n/a |
| Source: lonres | |||||||
south kensington
Over half the properties sold in this area went for a discount, with buyers on average negotiating 9 per cent off the asking price.
-5.7%
Annual sales volume growth
-8.8%
Average discount
2.9%
Annual gross rental yield
-5.7%
Annual sales volume growth
-8.8%
Average discount
2.9%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £1,009 | -20.3% | 130 | 19 | -6.7% | 7 | -50.0% |
| £1m - £10m | £1,793 | 3.9% | 158 | 38 | -8.8% | 33 | -5.7% |
| £10m+ | £3,237 | 72.1% | 167 | 1 | -16.5% | 4 | 300% |
| source: lonres | |||||||
Kensington, Notting Hill & Holland Park
Eleven super prime properties were sold here in the last quarter of 2021, making it the most active market for properties worth £10 million or more in London.
-24.8%
Annual sales volume growth
-6.1%
Average discount
2.9%
Annual gross rental yield
-24.8%
Annual sales volume growth
-6.1%
Average discount
2.9%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £1,067 | 6.0% | 168 | 79 | -6.7% | 52 | -18.8% |
| £1m - £10m | £1,596 | 2.0% | 134 | 92 | -6.1% | 94 | -24.8% |
| £10m+ | £3,089 | 28.1% | 109 | 3 | -4.7% | 11 | 22.2% |
| Source: lonres | |||||||
Bayswater & Maida Vale
Over half of the properties sold are at a discount to asking price, with buyers on average negotiating 8 per cent off the asking price.
-21.5%
Annual sales volume growth
-8.4%
Average discount
3.2%
Annual gross rental yield
-21.5%
Annual sales volume growth
-8.4%
Average discount
3.2%
Annual gross rental yield
Q4 2021
| Sold Property Price band | Quarterly Average Sales £/Sq Ft | Annual Change in price | Time on market before sale (days) | Number of properties under offer this quarter | Average discount for sold stock | Quarterly Sales Volumes | Annual change in quarterly sales volumes |
| <£1m | £983 | -3.4% | 176 | 71 | -7.0% | 58 | 5.5% |
| £1m - £10m | £1,398 | 10.8% | 148 | 75 | -8.4% | 62 | -21.5% |
| £10m+ | £2,714 | -4.7% | - | 0 | -12.9% | 1 | -50.0% |
| Source: lonres | |||||||
Your home or property may be repossessed if you do not keep up repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt (multi-currency debt only).
Over-18s only. Terms and conditions apply. You may not be eligible for all Coutts mortgage solutions. Security may be required. Product fees may apply.
Source of data in the report: LonRes Q4 2021.
CONSIDERING YOUR NEXT MOVE? LET COUTTS HELP
