Boom in demand for prime London property revealed

Foxtons says there has been a 59% increase in demand from buyers and renters for high end homes.

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Demand for prime London property from buyers and renters jumped by nearly 60% last year, according to Foxtons.

Data from Foxtons’ annual London Report shows a 59% increase in demand for high end London homes in 2022.

The company’s prime London offices delivered the highest levels of transactions since 2016.

New build properties are in particularly high demand, Foxtons says. Whilst new build properties have long attracted a price premium, the report finds the current premium is higher than five years ago.

Energy efficiency and low maintenance are also key attractions of new build properties, the report found.

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Premium new build properties have proved particularly popular with international investors, making up 15% of all buyers who have gone under offer or exchanged on these properties so far this year.

The opportunity to buy off-plan, or the convenience of purchasing ready-to-move-in property, alongside the relative value of sterling throughout the course of 2022, explains why Prime London has been an attractive investment to overseas buyers.

Foxtons recently partnered with the Berkeley Group to connect Hong Kong buyers and landlords with UK property.

“We expect demand for well-priced new build homes in desirable locations to remain strong in 2023.”

Alex Isidro, Head of New Homes and Investments, Foxtons

Alex Isidro, head of new homes and investments at Foxtons, says: “Last year proved a successful year for our new build teams, with more deals completed year-on-year.

“We expect demand for well-priced new build homes in desirable locations to remain strong in 2023.”

He says another trend is for more Hong Kong buyers entering the London market via Build to Rent schemes, which can often offer flexible tenancy agreements to make the transition to a new country easier.

Buyers from Hong Kong own more properties in England and Wales than any other foreign place, data from Benham and Reeves revealed.


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