New findings have revealed that London’s luxury property market appears unaffected by the current economic slump, standing head and shoulders above the broader UK housing market trends.
In July, London’s luxury home sales surpassed the broader U.K. housing market, with high-end sales rising 13% over the five-year average, while overall UK sales decreased by 5%. This robust performance in London’s premium sector was attributed to factors like a high proportion of cash buyers – sitting at around 70% – and specific areas popular with foreign buyers seeing significant price increases.
David Hannah, Chairman of Cornerstone Group International, asserts that these findings showcase London’s enduring appeal as a global hub for high-end residential properties, defying market norms and establishing itself as a unique haven for luxury property investors.
According to the report, London’s luxury homes have not only weathered the market’s fluctuations but have also outperformed the rest of the UK housing market in recent times.
The data reveals that while the overall UK housing market might have experienced variations in response to economic shifts and uncertainties, London’s luxury property segment has showcased remarkable stability and consistent growth.
Hannah points out that the continued standout performance by the city highlights the resilient demand for luxury properties in London, fuelled by factors such as the city’s status as a global financial centre, a cultural magnet, and a hub for innovation.
Despite the flow of poor economic conditions, the enduring appeal of London’s luxury homes continues to attract discerning buyers who seek both opulence and investment value.
David Hannah, Group Chairman of Cornerstone Tax International said, “We have seen a fall in house prices in 2023 – this is primarily due to high interest rates coupled with the increase in the cost of living, eroding people’s spending power.
“Interestingly, what has emerged in the housing market is the continued exceptional performance of the luxury property market, most notably in London.
“It seems that wealthy buyers are capitalising on the recent fall in house prices and buying in cash making them immune to the current mortgage rates chaos that’s sweeping through the market.
“As a result, while the majority of the markets are seeing a slowdown of activity, high-end properties in sought-after cities such as London are seeing a continued rise in activity.”