In the last year, nearly 200 houses in London were purchased for £10 million as the wealthy’s interest in buying a country home due to the pandemic declines in favor of luxurious properties in the city.
According to research conducted by the estate agent Knight Frank, a record-breaking number of 175 homes were sold for over £10 million in the 12-month period ending in November 2023, marking the highest number in eight years.
In 2014, there was a spike in high-end property sales just before the implementation of increased stamp duty rates for homes worth over £1m. A total of 225 homes worth £10m or more were sold.
Estate agents have labeled the properties as “super prime” and a total of over £3.4bn was used to purchase them, making it the highest amount spent since 2014’s £4.2bn.
The figure for the full calendar year of 2023 is likely to be even higher as a number of extremely pricey sales have recently completed. This week Indian billionaire Adar Poonawalla, known as “the vaccine prince” due to his family’s vast vaccine factories, agreed to buy a mansion in Mayfair for £138m.
The Serum Life Sciences company owned by Poonawalla is purchasing Aberconway House, which is 2,300 square meters and 24 times larger than the average English home. The property was previously owned by the late Polish billionaire Jan Kulczyk’s daughter. Poonawalla has been renting the house since 2021 for a weekly fee of £50,000.
The top areas for high-end sales were Mayfair, with 29 transactions, followed by Kensington with 24 and Belgravia with 23. In London, there were a total of 28 deals over £30 million, 24 deals in the £20-£30 million range, and 123 deals between £10 million and £20 million.
A property known as “Radlett House”, described as a traditional country residence, located in the St John’s Wood area and situated on a private road with exclusive access to Primrose Hill, was purchased for £42.9m.
Although there was an increase in expensive sales in the city, there was a decrease in the rural areas. The quantity of sales over £8m outside of London dropped from 42 to 35 between December 2022 and August 2023, compared to the previous year.
Second, the currency play that has seen the pound drop significantly
According to Rory Penn, the head of London sales at Knight Frank, there are two main factors that contribute to London’s impressive performance. The first is its longstanding status as a top global city, alongside other major cities such as New York, Paris, and Singapore. Despite Brexit concerns, London continues to hold a prominent position on this list. The second reason is the impact of currency fluctuations, resulting in a significant drop in the value of the pound.
Another commonly overlooked factor is the financial aspect. Clients can now purchase a prestigious property in the top central London areas for the same price, or even less, than they could have 10 years ago. This indicates that London is currently offering favorable value, possibly at the bottom of a 20-year trend.
Sales at the upper end of the market have not shown consistent strength throughout the year due to decreased demand following the mini-budget at the end of last year, as well as inflation and interest rates leading to a decrease in activity. However, Knight Frank has recently observed a significant increase in sales over the past six weeks due to an improved economic outlook.
Unfortunately, two of the priciest properties in the UK have not been sold. These are 2-8A Rutland Gate, a luxurious “private palace” with 45 rooms that boasts a view of Hyde Park and is being offered for around £200 million, and The Holme, a grand estate with 40 bedrooms situated on four acres of Regent’s Park, currently listed for £250 million.
Source: theguardian.com
