London is home to more than 9 million people spread across its 607 square miles and 32 boroughs. For many people, it is among the best places to live in the UK.
With no shortage of people seeking to make a living there, house prices in the UK’s capital city are far higher than in most other areas of the UK.
But even within the city itself, there are huge disparities in how much properties in certain areas go on the market for.
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Over 4,708 homes have been listed in prime London locations over the last month, with 43% of them being priced at £1 million or more, new research by Benham and Reeves, a London-based estate agency, reveals.
Those hoping to buy in these prime locations will need to fork out extra cash to the taxman after temporary increases to stamp duty thresholds ended in April: purchasing a house of £1 million will now incur £43,750 in stamp duty – up from £41,250 in March.
Purchasing a home in such expensive and prime locations will mean that buyers will likely end up needing a hefty mortgage, meaning it is even more important to pay close attention to where mortgage rates are going and see whether it is worth fixing their payments or not.
We take a look at the areas in London that are home to the most £1 million homes. Do you live in one?
What is the most expensive area of London?
After decades of strong price growth for London homes, the idea of a home being priced at £1 million or more is not that surprising for a local – the average house in the capital costs almost £700,000, after all, according to RightMove.
But property price appreciation in the high end London market “has been more muted of late,” according to Marc von Grundherr, director of Benham and Reeves.
This being said, von Grundherr notes: “A considerable number of sellers have entered the market already this year and a high proportion of these homes are commanding £1 million or more.”
Von Grundherr says he expects this initial activity to translate into completed sales as the year progresses. “We should see a far more stable outlook with respect to high end London house price performance,” he adds.
With more activity in the high end London property market potentially on the horizon, we take a look at the ten most expensive areas of the capital where homes are being listed for £1 million or more.
Mayfair
Mayfair, is one of London's most exclusive areas, with 93% of homes listed for sale in this prime central location have been priced at £1 million or more.
The area has no short supply of celebrity residents occupying its Georgian red-brick townhouses – both past and present.
Irish playwright Oscar Wilde called Mayfair his home, as did Winston Churchill and Jimi Henrix.
It is no wonder all these people were drawn to the area since it is chock-full of art galleries, private members’ clubs, and peaceful parks.
Knightsbridge
Just a stone’s throw away from Mayfair, Knightsbridge comes in as the London area with the second-most properties being listed for £1 million or more.
Located in London’s affluent west, Knightsbridge is famous not only for its luxury charm, but also for its high-end shops like Harrods.
Despite its central location, peace and quiet can easily be found in its many winding side streets, populated by little pubs and parks.
To enjoy the location’s amenities, prospective residents will likely need to have at least £1 million to spend as 90% of homes listed for sale in the area in the past month have cost at least this much.
Barnes
Briefly moving south of the Thames, Barnes comes in as the area of London with third-most properties being listed for £1 million or more.
This quaint area is just 30 minutes away from central London but feels like stepping into the countryside with plenty of lagoons and greenery.
Being in such a beautiful and prime location, it is no surprise that 82% of the homes going for sale in Barnes are listed at £1 million or more.
Belgravia
Coming in as the fourth-most expensive neighbourhood in London is Belgravia, located right next to the aforementioned Knightsbridge in the capital’s west.
A short walk away from Hyde Park and Buckingham Palace, Belgravia is full of Regency-era townhouses and countless embassies.
For that reason, buying a house here is no easy feat, with most prospective buyers having to pay millions for a home there – 79% of all homes listed for sale in the area in the past month were at least £1 million.
Fitzrovia
Unlike the majority of areas on this list, Fitzrovia is not located in London’s west, but is instead in the north of its centre.
Despite its southern-most street, Oxford Street, being London’s premier shopping location, taking just a short walk further into the area, you will find that all the hustle and bustle of the capital departs.
The area’s tight grid structure is filled with 19th-century buildings, including many pubs, restaurants, and cultural sites.
London’s premier museum, the British Museum, is located on the outskirts of the area, and the beautiful Regent’s Park is just a short walk away from the heart of Fitzrovia.
Homes in the area are expensive, with 71% of properties listed for sale in the area in the past month going for £1 million or more.
Marylebone
Nestled in central London, Marylebone is just across Great Portland Street from Fitzrovia, and boasts many of the same attractions and amenities, bordering Regent’s Park.
To the area’s South West border sits Marble Arch and Hyde Park, and on Marylebone’s southern end lies Bond Street, one of London’s most famous streets for luxury shopping.
Thanks to its charming village feel and proximity to London’s most famous spots, 68% of homes in this prestigious area are listed for £1 million or more.
Kensington
A famously upmarket area of west London, Kensington has long been a symbol of affluence.
The area is densely populated with Victorian townhouses that many of London’s wealthiest call home and has great transport links into central London.
On the area’s eastern border is Kensington Palace, a royal residence that has been home to countless members of the royal family and is currently the official London home of the Prince and Princess of Wales.
Unsurprisingly, the majority of homes for sale in this area are listed for £1 million or more, with 66% of properties for sale listed at this price in the last 30 days.
Hampstead
The eighth-most expensive area of London is an outlier for the list, being one of only two in the top ten that sit significantly outside central London.
Hampstead is an affluent and predominantly residential area of London, just 16 minutes from Charing Cross on the Northern Line.
Perhaps the biggest attraction of the area is Hampstead Heath, one of London’s largest green spaces and home to one of the city’s highest points. From the top of Parliament Hill, you can spy the Houses of Parliament, the City of London, and St Paul’s Cathedral.
Homes in this area are pricey, with 64% of all homes listed for sale in Hampstead being at least £1 million.
Chelsea
Moving back to central London, the ninth-most expensive area of Britain's capital is Chelsea.
Like its neighbour to the north, Kensington, Chelsea is a famously affluent area that lies on the north bank of the River Thames.
The area is home to innumerable wealthy individuals and upmarket shops and restaurants.
In the spring, the area comes to life with the Chelsea Flower Show which showcases floral displays and garden designs, attracting visitors from all over London and beyond.
Homes in the area are dear. 63% of all homes listed in the area in the past 30 days cost £1 million or more.
Holland Park
Rounding off the top ten is Holland Park or, as it is known among locals, ‘Millionaire’s Row’.
The area homes countless celebrities from all walks of life, including David and Victoria Beckham, Elton John, Robbie Williams, and even David Cameron.
At the heart of Holland Park is the green space from which it derives its name, home to two Japanese gardens and the remains of Holland House, a stately home that was destroyed in the Second World War.
As the area is dubbed ‘‘Millionaire’s Row’, it is no wonder that homes in the neighborhood can cost a pretty penny. In the last 30 days, 60% of the houses listed for sale in the area cost £1 million or more.
Which prime London areas are the least expensive?
Despite their exclusivity, not all prime areas in London have the majority of their homes selling for £1 million or more.
Take for example Clapham. The area in south London is a favourite among younger professionals thanks to its transport links to the City.
However, just 23% of homes there are listed at £1 million or more. That is nothing to scoff at, but is far from the proportion in areas like Kensington.
A list of the ten prime London areas where the fewest homes were sold for £1 million or more in the past month can be found below:
Area | £1m plus homes as a proportion of all available homes listed in the last 30 days |
|---|---|
Clapham | 23% |
Maida Vale | 24% |
Wandsworth | 24% |
Canary Wharf | 24% |
Wimbledon | 25% |
Putney | 25% |
Islington | 26% |
Battersea | 32% |
Richmond | 33% |
Wapping | 33% |
Pimlico | 39% |
Source: Benham and Reeves
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