It’s been a peculiar few years for Prime Central London. Areas that are home to some of the planet’s most desirable and expensive real estate were accustomed, for the past three decades at least, to seeing a seemingly unstoppable rise in prices, fuelled to a large extent by a constant stream of international buyers.
But then came the pandemic, which put a stop to the international market at the same time as domestic city-dwellers began to sell up and flock to the country. For a moment, the future of Prime Central London looked a bit uncertain.
However, the market has entered 2022 in full swing again, with demand for properties in Chelsea, Kensington and Notting Hill currently rising fast. In fact, the problem now is not a lack of buyers but a lack of stock. Charles Erwin, head of sales at Winkworth Notting Hill, reports that while buyer registrations are running very high, there is an unprecedented lack of stock, particularly of family houses. This is leading to severe competition between buyers for family houses and record prices being achieved. He says: “We expect this to be a very strong year in terms of activity in both sales and lettings and some strong prices being achieved on both fronts. The current lack of stock may abate coming into spring which is the traditional selling market. The enduring charm and eclectic atmosphere will continue to make Notting Hill a desirable place to live.”
While interest rates are rising, they still remain very low, and this is a good time to be investing in property. But according to Will Yule of Winkworth Knightsbridge, Chelsea & Belgravia, the international market has yet to catch up with pre-pandemic levels. He says: “My general view is that the number of properties coming to market still remains lower than we are used to. The domestic market remains strong, particularly for family houses in and around Chelsea and for turnkey pied-a-terres (first floors, higher floors with lifts). The Knightsbridge market, favoured by the overseas market, is much slower with fewer buyers around, and lower ground floors and higher floor walk-ups are getting far fewer enquiries.”
In short, a basement in Knightsbridge that might have sold in days in 2019 may not attract quite as much interest in today’s market, while a family house might sell before it’s even listed. However, Yule is confident that this will level off. “We expect the market to pick up with more properties coming to market when restrictions ease further and International travel resumes in earnest.”
In SW7, Harry Synge of Winkworth South Kensington is positive. “Spring is definitely in the air. With the easing of restrictions, the movement in and out of Prime Central London for purchasers both foreign and domestic has reinvigorated the marketplace. Demand is rising and supply a little behind; as a seller there is a captive market to be reached. Prices have remained flat over the last 12 months, but we anticipate this will come to head in the right direction as we head further into 2022. An optimistic outlook therefore for the year to come after a difficult time for all.”
It seems that the rise of Prime Central London is just as unstoppable as ever, and all signs show that these desirable residential areas will continue to be in high demand, both at home and abroad.
Winkworth Prime covers our offices in Kensington, Knightsbridge, Notting Hill and South Kensington. Working closely together as one, our prime offices are highly experienced within their local areas and beyond.