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Sales of £5 million-plus London mansions hit record high as super-rich splash the cash

Princes Gate, Kensington  (Rightmove)
Princes Gate, Kensington (Rightmove)

A record number of mansions were sold in London in 2022, in signs the capital’s super-rich are shrugging off an economic downturn to get their hands on luxury property with a seven-figure price tag.

Over 600 homes over the value of £5 million were sold in the capital last year, the highest level property business Savills has seen since records began in 2006.

Frances McDonald, research analyst at Savills, said: “High value properties continue to outperform across the board as unique quality homes remain sought after by buyers, both domestic and overseas.

“These markets are driven more by flows of global equity and although not immune, they are dictated less by domestic economic volatility.”

Over 60% of second hand sales took place in traditional prime central London hotspots, led by Chelsea (12.6%), Kensington (10.3%) and Knightsbridge (9.0%), Savills data showed.

But the £5 million-plus price tag is now increasingly being achieved in outer prime locations – including Clapham, Battersea, Bayswater and Putney – primarily driven by wider regeneration and redevelopment, the opening of new tube and Crossrail stations, and demand for larger family homes with more space inside and outside of the home.

More than 50 London neighbourhoods saw activity in the over-£5 mil price range in 2022, with the reach of this price tag likely grow even further in 2023.

The boom in sales of top-end property comes amid a slowdown in the rate of house price growth in the capital more generally. The average London home grew 2.9% in value in 2022, according to the Halifax House Price Index, well behind figures from the East of England (+5.5%), West Midlands (+9.1%) and Wales (+6.1%)

McDonald added that the luxury property market did show some signs of softening towards the end of last year, but remained well above pre-pandemic levels.