According to a new wealth survey by luxury estate agency Beauchamp Estates, the super-prime market was disrupted by a combination of stamp duty rises, changes to the non-dom regime, the UK general election, and the new Labour government.
The annual Billionaire Buyers in London survey looked at sales of luxury residential properties valued over £15m between January and December 2024, compared to 2023, analysing data from LONRES and Beauchamp Estates.
In 2024, there were 40 sales for luxury properties priced over £15m, totaling £856.5m, compared to 54 sales in 2023 worth £1.3bn.
The estate agency found that younger international buyers drove the luxury home market in 2024, preferring turn-key properties, which led to a “significant” decline in demand for second-hand homes needing refurbishment.
Over the past 12 months, there were 10 sales of super-luxury new-build London apartments priced over £15m compared to 19 sales in 2023.
The luxury estate agency attributed the drop in apartment sales during 2024 to a lack of supply of new-build homes in favoured addresses such as Mayfair and the ‘stop, start’ nature of the London sales market.
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Unlike in the previous four years, no homes in London were sold for values above £100m in 2024, according to the report.
Last year, the most sought after area in London was Mayfair, which accounted for nine of the 40 £15m-plus deals.
The £2bn Caudwell Mayfair development, where prices start from £35m, is an indication of the popularity of this particular area.
Jeremy Gee, managing director at Beauchamp Estates, said: “During 2024, American and Middle East buyers accounted for almost 50% of super-prime sales across London’s most prestigious addresses.
“Stamp duty, non-dom changes, the election, and new Labour government have disrupted the sales market.
“Over the next four years, the wave of American buyers into London looks set to increase further.
“Since June 2024 onwards, we noticed a 30% rise in overseas clients enquiring about suitable homes in the capital that they could purchase, and the largest group of buyers have been Americans.”
Paul Finch, director and head of new homes at Beauchamp Estates, commented: “A key reason for [the] significant upturn in American and Middle East buyers in London is the exchange rate advantage that Americans and Middle East buyers benefit from using dollars to buy homes in the UK capital.
“Back in 2016, American buyers effectively benefitted from a 7% price discount due to the strength of the US dollar against the pound.
“In 2024 this has grown to an 18% price discount.”
Picture above by Beauchamp Estates
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