Buyer demand across prime London has remained resilient in the first quarter of 2026 defying wider economic uncertainty and reinforcing the capital’s continued appeal among high-value buyers.
The latest Prime London Demand Index from Benham and Reeves shows that activity across homes priced between £2m and £10m edged up during Q1, with overall demand reaching 13.4% – a quarterly increase of 0.2% and 2.8% higher than the same period last year.
The data points to a market that, while far from booming, continues to show underlying strength, particularly in family-led locations and well-established prime neighbourhoods.
Islington emerged as the strongest performing prime market, with 37.3% of listings securing a buyer, followed by Wandsworth (34.5%), Chiswick (31.4%), Wimbledon (30.5%) and Putney (28.9%).
RENEWED CONFIDENCE
In terms of quarterly momentum, Battersea led the way with demand up 7.8%, while Belgravia (+6.3%), Victoria (+5%) and Pimlico (+4.3%) also recorded notable increases – suggesting renewed confidence in both lifestyle and central London markets.
However, the picture remains mixed. Areas such as Barnes (-20.9%), Putney (-13.2%), Chiswick (-11.9%), Regent’s Park (-11.5%) and Highgate (-10.7%) all saw sharp quarterly drops, underlining the fragmented nature of demand at the top end of the market.
At the very top of the ladder, the super prime (£10m+) sector remained largely flat. Demand stood at 3.3% in Q1, representing a marginal quarterly dip of -0.01%, although still 0.2% higher year-on-year.
Highgate continued to dominate this segment, with 23.1% of super prime homes securing a buyer, followed by Chelsea (12.5%), Hampstead Garden Suburb (6.5%), Knightsbridge (6.1%) and St John’s Wood (3.7%).
Quarterly growth in the super prime market was led by Chelsea (+8.9%), Highgate (+6.4%), Knightsbridge (+2.7%) and Mayfair (+1.7%), pointing to sustained appetite in core ultra-prime postcodes.
The figures suggest that, despite ongoing macroeconomic pressures and increased taxation at the top end, demand remains underpinned by a combination of domestic family buyers and international capital targeting London’s most established locations.
GOOD RESILIENCE
Marc von Grundherr (main picture, inset), Director of Benham and Reeves, says: “Despite such great global economic uncertainty since the start of the new year, as well as the higher tax burden of the so-called Mansion Tax, London’s most sought-after property markets have shown good resilience across the first quarter of 2026.
“In many areas, demand has shown strong growth, and it’s clear that the capital’s prime markets are still attractive, with buyers prepared to pull the trigger when the right properties come up.
“It appears that family homes are still driving demand for the most valuable properties, with more residential locations like Chiswick, Wimbledon, and Highgate continuing to attract buyers. But we’ve also seen an uptick in the more central, city-focused areas of Victoria, Mayfair, and Canary Wharf, which shows continued belief in London’s most central markets, and hints that foreign investment is still funnelling.”
SUSTAINED DEMAND
He adds: “On the ground, we’re seeing sustained demand for homes within traditionally strong rental markets which is helping to sustain the market prices being achieved and, across the board, we’ve seen a 15% increase in buyer enquiries in Q1 alone and there simply isn’t enough stock to satisfy this demand.
“London’s prime markets are not immune to global and domestic economic tides, but the city’s great appeal is impossible to dim, so we are confident that demand for its most valuable homes will continue to show resilience over the next quarter and, should global affairs settle, head into some really strong performances in the summer months.”
