Wealthy property buyers have bought nearly three billion pounds worth of property in London in the first half of 2022, according to Savills.
Among these, 294 of the properties were worth five million pounds or more and 89 sold for over ten million pounds. The figure is close to the 308 sales of five million pounds plus properties sold throughout the whole of 2019. Most of the properties sold to domestic buyers.
High end homes have become a safe haven for big money that might otherwise have been invested in equities or bonds in a less gloomy economic climate. There is the belief, or perhaps hope, that the property market is unlikely to suffer huge overnight drops, as in the case of some crypto-currencies of late.
The figure contrasts with the lower end of the property market, where it is predicted that house sales will slow down due to higher interest rates and the effects of inflation. The top end of the market, however, is less likely to be held back by the need to borrow mortgage funds and is less likely to be affected by an increase in the cost of living. At this end of the market, sellers are often more willing to negotiate the price of property – perhaps for fear of being left behind should house prices fall significantly.
Wealthy London neighbourhoods including Belgravia, Chelsea, Kensington, Knightsbridge, Mayfair and St John’s Wood, have attracted half of this year’s property sales.
Despite the figures, the average house price at the top of the market has not yet reached record levels. In fact, since rebounding soon after the financial crisis of 2008, the price of more expensive property in London has actually decreased since peaking in 2016 and the average property now stands at around 14% lower than six years ago.