Buyer demand for prime London homes rose by 1.1% during the final quarter of 2023, according to Benham and Reeves.

The lettings and estate agent Prime London Buyer Demand Index showed the quarterly increase for homes valued at £2m+ (prime) in today’s report. However demand was down by 0.7% on an annual basis.

Meanwhile, it said the super prime market (£10m+) struggled with demand falling 3.4% in Q4, compared to Q3, and some 11.9% down on the same period last year.

Demand is based on the proportion of all homes listed for sale across the prime market that have already been sold subject to contract.

Chiswick was the hottest spot of the prime London market during the closing stages of 2023, with buyer demand levels at 52.1%.

Richmond enjoyed the largest quarterly uplift in buyer demand, climbing +10.9% versus Q3, with Chiswick again performing well with a +10.3% increase. Islington (+5.6%), Wimbledon (+5.5%) and Notting Hill (+4.7%) also saw some of the largest quarterly increases in prime London buyer demand.

Notting Hill was the most in demand area of the super prime market with 9.1% of all homes listed above £10m finding a buyer.

Chelsea saw the largest quarterly uplift in demand for super prime London homes, up +8.5% versus Q3, followed by Holland Park (+4.3%) and Mayfair (+3.8%).

Mayfair was the only area to see a year-on-year increase in super prime demand at +1.5%. 

Benham and Reeves director Marc von Grundherr says: “London’s top tier property market largely echoed the subdued market performance seen across the rest of the capital during the final quarter of 2023.

“However, there are signs that these cooler market conditions could be on the turn, with buyer demand starting to climb across the core prime market, resulting in many individual neighbourhoods registering strong growth.”