Mansions in London’s prime sector are in high demand among the HNWIs. Sales rose by more than 12% among the top agencies in the Q4/20 – Q1/21.
The city’s housing market enjoyed a robust year in 2020, despite the uncertainty caused by the pandemic and Brexit. The value of London’s prime properties expected to go up by more than 2% over the next ten months.
For deals above £10 million, Chinese and Hong Kong buyers dominated the housing market in 2020. Wealthy overseas buyers turned out to invest less in high-end apartments. They switched attention towards the ultra-prime property deals on offer for sprawling London mansions and equestrian properties in a search for privacy and ultimate comfort.
Outside of Greater London, they get more space for their money. £10 million can afford you a 4 – 5 thousand sq ft home in Belgravia. At the same time, this money can buy a 12,000 sq ft house and 3 acres of land in a location like Kent or Surrey, where Kent offers slightly more value for money.
Surprisingly, Cornwall recently became a trendy destination for online property searches. Dorset has also proved increasingly popular, jumping from position 20 to tenth in the most-searched-for list. After a year of pandemic, London is now in the second spot, followed by Devon and Bristol. Searches for homes with a garden have also hit a record level. Terms “garage” and “pool” became the most popular keyword used by home-hunters. Still, the most significant mansions with cultured landscape and decent acreage are mainly available in Surrey and Kent. The annual growth in the average price for houses in South East England is up by more than 3% in February 2021.
Demand for homes spiked 13% to the same period of 2020, and supply is not there yet. The flow of new houses supply is 13% down, as Zoopla.co.uk research shows. The post-pandemic “search for space” means the average time to sell for houses falls to 42 days, some 20 days less than flats. Cheaper properties in Cornwall and Dorset priced between £0.5 and £1M are in high demand among the domestic buyers.
Property price growth ranges from 5.7% in Wales and 5.3% in the North West of England to London, trailing with 2.3% growth.
ORACLE CAPITAL GROUP is an investment and real estate development consultancy specialising in residential and commercial property projects. Our experience includes completed projects in commercial property, leisure, hospitality, retail and student accommodation. We provide accountancy and tax services for buy-to-let companies.
Head of Investments, Real Estate