Cash buyers have been driving sales in prime central London, according to leading estate agency Savills. Despite concerns about rising interest rates and price sensitivity, there has been an increase in £10 million-plus cash deals this summer in prestigious areas such as Kensington, Chelsea, Westminster, and Knightsbridge. Wealthy buyers, who are not affected by rising borrowing costs, are opting to purchase properties mortgage-free. This trend has led to faster transactions, taking between four to six weeks rather than the usual four to six months. The buyers are attracted to historic homes in pristine condition, situated in sought-after locations with rarity value. Both international and UK-based cash buyers are investing in prime central London and putting down roots in the capital.
66% Cash Purchases
Recent high-value transactions in prime central London highlight the growing interest in the area. £100 million of property sales have taken place in Kensington and Chelsea, including the off-market sale of a family home in the Boltons Conservation Area, a recently refurbished house in Chelsea, and a historic Grade II* listed building in South Kensington with planning and listed building consent for a family house. Another £40 million of property transactions have occurred in Knightsbridge, including two houses on Knightsbridge garden squares, a lateral apartment in Knightsbridge, and a house on a Belgravia garden square with potential for refurbishment. In addition, over £50 million worth of sales were reported in Westminster, involving three houses in Queen Anne’s Gate.
Moreover, there are more sales in the pipeline. Strong interest continues, with recently agreed sales on properties in Mayfair, Belgravia, and Westminster, ranging from £12 million to £50 million each.
Savills Research indicates that in the period between January and July 2022, 66% of Savills sales in prime central London were cash purchases, compared to 59% in the same period the previous year. The estate agency has observed a notable increase in the desire to purchase property, even amid reports of a general slowdown in the market. Cash buyers at the top end of the market are choosing high-quality properties, such as a house in Chelsea that has been beautifully renovated behind its period facade.
The appeal of prime central London lies in its lifestyle offerings, attracting families who are enticed by its combination of quality schools, cultural attractions, green spaces, history, and architecture. The area’s enduring appeal on the international stage is evident in the successful sales of historic trophy houses in prime locations. These transactions demonstrate the resilience of London’s high-end property market. From period houses on Queen Anne’s Gate renowned for their Grade I listed architecture to unique homes on elegant garden squares, buyers continue to show confidence in the capital.
Conclusion
Cash buyers are currently driving sales in prime central London, particularly in areas like Kensington, Chelsea, Westminster, and Knightsbridge. Wealthy buyers, unaffected by rising borrowing costs, are choosing to purchase properties without mortgages, resulting in faster transactions. The appeal of prime central London lies in its historic homes presented in immaculate condition, located in highly sought-after locations.
These properties offer rarity value, attracting both international and UK-based cash buyers who want to establish a presence in the capital. Recent high-value transactions, amounting to nearly £200 million, illustrate the growing interest in prime central London. Savills Research shows that a significant proportion of sales in the area have been cash purchases, demonstrating the desirability and resilience of London’s high-end property market.