The latest Coutts London Prime Property Index has revealed that activity in prime property market continued to rise in Q1, despite the conditions of lockdown. The wealth manager and private bank’s data suggests that buyers continue to look for space.

High-value central areas of London have seen the most significant falls in demand compared to the post-election bounce the market saw last year. But buyers have not fled the centre entirely. Areas offering larger homes and green space continue to find favour.

A 27.3% increase in sales compared to a year ago, properties selling 18 days faster and a 4.7% price decrease has meant the market is “febrile” according to Coutts CEO, Peter Flavel. “Stamp Duty holidays and the impending surcharge for non-resident buyers have disrupted usual market patterns. My conversations with clients suggest they’re thinking more about the quality of their lives at home than these measures. The last 12 months has made it clearer than ever that home is about making a family life you want to live; not just pennies and pounds.” He continued.

Chelsea, which recorded a 22.7% annual increase in sales in Q1 2020, saw a further 39.3% annual increase in Q1 2021. The home of the flower show was joined as a strong performer by Kensington, Notting Hill and Holland Park which recorded a 44.4% annual increase in Q1 2021, following a 12.3% rise in sales a year earlier. However, South Kensington, which saw sales boom a year ago, recorded 14.9% fewer sales in Q1 2021 than Q1 2020, albeit from a high base. Knightsbridge & Belgravia also saw transactions fall by 23.4% annually.

London Breakdown:

HAMPSTEAD, HIGHGATE, BARNET & HARINGEY
Annual growth in prices of 4.6% made this our best performing area in Q1.

ST JOHNS WOOD, REGENTS PARK AND PRIMROSE HILL
One of the busiest markets in Q1 with a 79.4% annual increase in sales in and 34.2% more properties listed for sale.

KINGS CROSS & ISLINGTON
Less stock on the market this year than last means properties here sell more quickly here than elsewhere in London, an average of 135 days compared to 154 across all prime London this quarter.

MARYLEBONE, FITZROVIA & SOHO
This area saw the highest annual fall in prices in Q1, but sales up 40.6% on Q1 2020.

MAYFAIR & ST JAMES’S
Buyers here paid the highest average price of any prime London area this quarter, with the number of properties sold between £2million and £5 million doubling compared with Q1 last year.

KNIGHTSBRIDGE & BELGRAVIA
This area recorded the highest annual fall in sales in Q1 but a 33.3% annual increase in properties under offer suggests Q2 could see activity increase.

PIMLICO, WESTMINSTER & VICTORIA
This area has seen the highest annual change in properties under offer, up 50%, but there is still plenty of choice with 39.2% more properties on the market than at the end of Q1 last year.

WIMBLEDON, RICHMOND, PUTNEY & BARNES
The market below £1million was particularly busy here this quarter, with the number of sales 73.2% higher than in Q1 last year.

BATTERSEA, CLAPHAM AND WANDSWORTH
Demand for family houses continues to support activity with 37.2% more homes sold in Q1. But fewer homes were listed in Q1, a -26.4% annual fall.

FULHAM & EARLS COURT
43.3% more properties under offer here this year than last. But there is still a good amount of stock on the market, up 55.6% on Q1 2020.

CHELSEA
Price growth of 4.3% over the last 12 months the means this is second best performing of our prime London areas in Q1.

HAMMERSMITH & CHISWICK
One of the busiest areas for sales in Q1 but a rush to complete before the end of March means under offer volumes were down -20.6% at the end of Q1 this year compared with the same point a year earlier.

SOUTH KENSINGTON
12.0% more properties under offer than Q1 2020 and sales up 29.0% on Q4 2020 suggest the market is picking up here.

KENSINGTON, NOTTING HILL & HOLLAND PARK
A busy first quarter in Kensington, Notting Hill & Holland Park not only saw 44.4% more properties sold but also a 26.4% annual increase in properties under offer.

BAYSWATER & MAIDA VALE
This area saw a 38.3% annual increase in new listings in Q1, the highest of any prime London area.