Luxury home sales in London surged in the first half of 2021
Sales of luxury homes in London hit an all-time high in the first half of 2021, according to a report released by Savills on Thursday.
There were 237 deals for residences priced at Â£ 5million (US $ 6.87million) or more in the first six months, a peak of 59% from the same period in 2020 , according to the data. The UK was in a Covid-19-induced lockdown for much of that time, but the number of transactions this year has also increased by 61% compared to the first half of 2019.
In addition, the total sales value of luxury goods stood at Â£ 2.28 billion in the past six months, up 41% from the first half of 2020 and a 43% increase from the same period in 2019, according to the report.
Due to travel restrictions, domestic buyers, as well as international buyers already in the UK, have benefited from lower prices and fewer competitors.
“The absence of foreign buyers has held back the recovery of parts of the main London market, notably the higher value central postcodes, where prices remain around 20% below the peak,” said Frances Clacy, analyst at residential research at Savills, in the report. “London-based buyers clearly called the bottom of the market at the end of last year and were able to benefit from deals with relatively low levels of competition.”
Many London residents have looked to swap over the past year as stay-at-home orders have prompted them to purchase larger homes with more outdoor space.
Highlighting this trend, prices for large ‘London country house style’ have pushed prices up 9% year over year, while prices for houses with six or more bedrooms in the West and southwest London rose 8.2%, according to the report. .
âHomes have remained the best performing as buyers look to increase their size, but the flat market continues to lag due to international travel restrictions,â Ms. Clacy said. “However, pent-up demand from those who were unable to travel suggests that there will likely be a rebalancing in demand once international buyers can visit the capital again.”
Central London properties accounted for 89% of deals above Â£ 5million, the data showed. The neighborhoods of Chelsea and Kensington fare the best, with 14% and 13% of sales respectively. The city’s outlying suburbs, such as Putney and Wimbledon, also performed well in the luxury sector, accounting for 11% of prime deals.