By Carol Lewis
Despite the current political climate and economic turmoil, the UK’s capital is still a hotspot for premium property buyers, with little sign of slowing down.
Whatever the broader economic headwinds, prime central London continues to attract the world’s wealthiest individuals — and at Black Brick Property Solutions, we have been seeing this return of international buyer appetite play out directly across our client base.
As international travel resumed and London’s summer social season roared back to life following two pandemic-interrupted years, wealthy buyers from the Middle East, Africa, the United States and the Far East began returning to the capital in meaningful numbers. Oil and gas profits, combined with the strength of the dollar against the pound, have given many international buyers considerable purchasing power in the London market:
“Anyone working in oil and gas seems quite interested in the London property market — I have a few Nigerian clients and inquiries from Africa, the Middle East and the United States. Oil is up, the pound is down, so London property will benefit from these buyers feeling much wealthier.”
— Camilla Dell, Managing Partner, Black Brick Property Solutions
However, not all segments of the wealthy buyer pool are equally bullish. The picture is more nuanced than a straightforward return of confidence across the board:
“My clients in private equity are extremely downbeat about the world particularly in the last few weeks with trillions wiped off the [stock] markets. They’re feeling much, much poorer and those who had their money in crypto [currency] are probably finished.”
— Camilla Dell, Managing Partner, Black Brick Property Solutions
This divergence reflects the complexity of the prime central London market at this moment. While oil-rich buyers and those benefiting from dollar strength are actively acquiring, those with wealth tied to equity markets or digital assets are markedly more cautious.
At the market level, the data points to genuine momentum. Knight Frank reported that the number of offers accepted in May was the highest monthly figure in a decade, with annual price growth of 2.4 per cent — the strongest rate since April 2015. Prime outer London recorded 4.8 per cent annual price growth over the same period, also a seven-year high. Looking further ahead, Knight Frank forecasts 6 per cent price growth in prime central London in 2023, with cumulative growth of 22 per cent projected between 2022 and 2026.
Transaction volumes are also picking up, with LonRes data showing May transactions running 11.5 per cent ahead of the prior year. Supply is gradually improving too, with new sales instructions in May reaching their sixth-highest level in a decade — though questions remain about whether a sustained pipeline of new buyers will follow once current demand is satisfied.
At Black Brick, we continue to guide clients through this dynamic and fast-moving market, drawing on deep relationships and off-market access to ensure our buyers are well positioned in one of the world’s most competitive prime residential markets.
Read more in the full article here.