London’s most expensive homes have hit their highest ever prices – with British buyers investing over foreign customers.
Wealthy families have turned to housing to put their money as the market continues to show no sign of slowing down.
Estate agent Savills says there were 294 sales of homes worth £5million or more in the six months to the end of June.
It added that the bulk of the investment was coming from domestic buyers.
The amount spent equals a massive £3billion and big potential boost to the economy.
Among them are 89 properties that sold for at least £10million.
Half of them were in moneyed areas like Chelsea, Belgravia, Kensington, St John’s Wood, Mayfair and Knightsbridge.
Research by MailOnline found this year properties going for £6.9million in Kensington and £9.9million in Chelsea.
This property in Kensington sold for £6.9million in March 2022 and its ornate interior shows how it fetched such a good price
This very handsome St John’s Wood home got £5.7million for its wealthy owners when it was sold in February earlier this year
This house, with its wonderful red dining room was sold in Chelsea and fetched a respectable £9.9million in January 2022
Knightsbridge is the location for this bright and airy house, which features this charming living room area and cost £10million
Stylish interiors helped to sell this impressive property in Belgravia for a cool £8.7million a few months ago in March 2022
Meanwhile in Belgravia one was sold for £8.7million in March and £10million in Knightsbridge that same month.
And in February a St John’s Wood semi-detached five-bedroom property went for £5.7million.
Savills analyst Frances McDonald told the FT that people with £5million to spend were less likely to be hit by financial difficulties facing much of the country.
She said: ‘This end of the market is less reliant on borrowing, reducing its exposure to further interest rate rises.
Fabulous paintings adorn the walls in this property which was sold for £9.9million this year in the UK’s capital city London
It is located on a pretty street and the terraced property is matched in style with its neighbours and has its own balcony area
‘They are less likely to be impacted by the increased cost of living.’
After the pandemic it had been widely predicted that the housing market would begin to slow.
But sales in the first half of this year have matched levels seen before coronavirus ravaged the globe.
Stuart Bailey, head of prime sales in London for estate agency Knight Frank said the wealthy were seeing bricks and mortar as a more secure investment than other options.
This £5.7million home has a Family Bathroom, Drawing Room and a Reception/Library among its many household charms
It has five bedrooms meaning it is ideal for a medium family or a solo owner who likes to entertain in terrific surroundings
He said: ‘People tend to believe the London property market isn’t going to crash overnight; it’s not crypto.
And with inflationary pressures, having cash in the bank isn’t sensible either.’
On Wednesday it was reported that the average house price in the UK had jumped by £32,000 over the last year with the typical house now costing £283,000.
Property values increased by 12.8 per cent annually in May, accelerating from a 11.9 per cent increase in April.
This incredible location has a Drawing Room which can also be used as a Family or Media Room and has its own wet bar
This £10million property has an entrance/Dining Hall | Kitchen/Breakfast Room as well as even a Guest cloakroom for visitors
This pushed the typical house price to £283,000 in May, which was £32,000 higher than a year earlier, the Office for National Statistics (ONS) said.
Property values in England, Wales and Scotland all hit new record levels in May.
Average house prices increased over the year in England to £302,000 (a 13.1 per cent annual increase), in Wales to £212,000 (14.4 per cent), in Scotland to £188,000 (11.2 per cent) and in Northern Ireland to £165,000 (10.4 per cent).
Within England, the South West was the region with the highest annual house price growth, with average prices increasing by 16.9 per cent in the year to May.
This Grade II Listed property boasts high ceilings and period features and was sold in March this year for a huge £6.9million
The Kensington property is one of 294 sales of homes worth £5million or more in six months to the end of June, report says
London had the lowest annual house price growth at 8.2 per cent. London’s average house prices remain the most expensive of any region in the UK, with an average price of £526,000 in May.
The ONS also released rental price figures, showing that private rental prices paid by tenants rose by 3.0 per cent in the 12 months to June, up from 2.8 per cent in the 12 months to May.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘As house prices continue to rise, inflation soars to 9.4 per cent and with more interest rate hikes on the way, there is growing concern around affordability and borrowing potential.
‘Mortgage rates remain competitive although they are on the rise. Borrowers need to move quickly to secure the best fixed rates as they are often pulled at short notice. With service levels varying considerably between lenders, it may take longer than borrowers anticipate, particularly if their case is complex so advice is more important than ever.’
The average house price in the UK has jumped by £32,000 over the last year with the typical house now costing £283,000 as households grapple with the cost-of-living crisis
Average house prices increased over the year in England to £302,000 (a 13.1 per cent annual increase), in Wales to £212,000 (14.4 per cent), in Scotland to £188,000 (11.2 per cent) and in Northern Ireland to £165,000 (10.4 per cent)
Richard Davies, MD of estate agent Chestertons, said there is a ‘stronger sense of urgency to buy’ among house hunters, before further possible interest rate hikes.
He said: ‘We are seeing an uplift in the number of international students (and) international buyers, as well as office workers, who require a pied-a-terre closer to work.’
Nicky Stevenson, managing director of estate agent group Fine & Country said: ‘The UK may be flirting with recession but you wouldn’t know it looking at annual house price growth.’
Jason Tebb, chief executive officer of property search website OnTheMarket.com, said: ‘Rising stock levels mean a subtle rebalancing of the market is inevitable, although this is likely to take several months.’
He added: ‘Despite sizeable headwinds, including soaring inflation and the prospect of further interest rate rises, those most serious about transacting are getting on with the business of moving.’