Luxury home sales soar in London

House prices in prime central London have risen for the first time since 2023, with LonRes reporting a 0.6% annual increase in February 2024, though still below pre-pandemic levels. Throughout 2024, property values in high-end areas like Kensington and Chelsea had declined significantly due to economic uncertainties and high buying costs. However, the market for homes priced over £5m has seen a surge in activity, with transactions up 13.8% from the previous year and new property listings increasing by 30%. Demand has been particularly strong in Mayfair, Bayswater, and Maida Vale, where new luxury developments have attracted buyers. A key driver of this growth has been the influx of US buyers, benefiting from favourable exchange rates and London's appeal as a stable investment. While the market shows signs of recovery, experts caution that rising supply and economic factors may limit future price growth.

The Standard (19/03/2025)