Research by estate agents Knight Frank shows that London’s prime properties are losing less value than other houses in the current dip.

1. Big Picture:

• While the UK has seen a general decline in house prices, Prime London properties have remained more stable.

2. Specifics:

• Over the past year, house prices have:
  • Dropped slightly in prime outer London by 0.2%.
  • Decreased by 0.9% in prime central London.
  • Recently, they’ve not changed much and remained fairly steady.

3. Why did Prime London Struggle during COVID?:

• People wanted parks and fresh air: During the pandemic, many prioritized homes near green spaces. Prime London, being more urban, faced a slight decline.
• Travel Restrictions: Prime London’s property market has many international buyers. With travel bans and lockdowns, there was a challenge for these buyers to make transactions.

4. Expert Insight:

• Tom Bill from Knight Frank highlights that:
  • “The reason is that prices have been so flat for so long compared to areas of the country that benefitted from a surge in demand for space and greenery during the pandemic, as the charts show.”
  • London’s property market has been doing better than the rest of the UK recently.
  • This is because prices in London have been stable for a while. In contrast, other parts of the UK saw a spike in demand for properties with open spaces during the pandemic.
  • A notable mention: Knightsbridge, an area with many flats and impacted heavily by international travel bans, saw a 3.3% price increase over the past year. This makes it the best-performing area in prime central London!

5. Sales Data from July:

• London saw a boom in property transactions:
  • Sales in London were up 13% more than the usual number we see over five years.
  • Meanwhile, the rest of the UK saw 5% fewer property transactions compared to the average.

Key Takeaway: Prime London properties are showing resilience. While the pandemic has influenced buyer preferences towards green spaces, the overall stability and the recent uptick in transactions indicate the enduring appeal of London’s prime areas for property investment.