London’s “Super-Prime” Property Market Returns to Pre-Brexit Levels

The luxury property market in London has rebounded, reaching pre-Brexit levels with more than 160 properties worth £10 million or more being sold in the past year. This marks the highest number of sales in this category since 2016 when Brexit uncertainties deterred global super-rich investors from the UK’s “super-prime” market.

According to data analysis from estate agent Knight Frank and data provider LonRes, a total of 161 sales of such high-value properties occurred in the capital during the financial year ending in March. This equates to an average of three sales per week. The combined value of these transactions amounted to £3.1 billion, with an average sale price of slightly over £19 million. These figures represent an increase from the previous year, which saw 144 properties sold for a total of £2.5 billion.

Paddy Dring, the global head of prime sales at Knight Frank, expressed confidence in London’s appeal to global buyers despite recent events. He stated, “After everything that has happened in recent years, London is still highly regarded by global buyers.”

It is worth noting that UK residents classified as non-domiciled for tax purposes, with permanent homes outside the country, are legally permitted to avoid paying over £3.2 billion in taxes on at least £10.9 billion of offshore income annually, as revealed in a report released last year.

Analysts from the University of Warwick and the London School of Economics discovered that 26,000 individuals granted non-dom tax status by HM Revenue and Customs have, on average, received £420,000 per year in unreported overseas income and capital gains.

Discussions surrounding the general election have started to influence conversations within the market, according to Christian Lock-Necrews, the head of Knight Frank’s office in Knightsbridge, where many of the most expensive properties are located. The estate agency anticipates increased scrutiny on issues such as wealth and property taxation and the status of non-domiciled individuals.

Notable buyers in the past year include Swiss billionaire Ernesto Bertarelli, who acquired an 80-room mansion in Belgravia for £92 million. Hanzade Doğan Boyner, founder and chair of Turkish e-commerce platform Hepsiburada.com, purchased a six-bedroom mansion in Knightsbridge for £27 million.

Kensington had the highest number of sales in the £10 million-plus category (26), followed by Belgravia (25) and Mayfair (22). Furthermore, several even more extravagant London properties have recently entered the market, such as 2-8a Rutland Gate, a 45-room “private palace” overlooking Hyde Park, listed at £200 million. Agents are also seeking offers surpassing £200 million for The Holme, a 40-bedroom villa within Regent’s Park.

Sources indicate that potential overseas buyers have visited both 2-8a Rutland Gate and The Holme on the same day, signalling continued interest in London’s super-prime property market.