Rush to buy high-value riches as wealthy buyers invest in prestigious London postcodes

What happens when there is a recession and an impeding cost of living crisis amid the Ukraine war, the wealthy buyers sought to take shield themselves from economic turmoil by investing in traditional bricks and mortar in Chelsea, Belgravia, Kensington, St John’s Wood, Mayfair, and Knightsbridge, instead of investment in equities or bonds. The sellers are willing to negotiate on price, of the fear of a downward economic outlook, which could trigger falling prices later in the year.

Sales of Homes worth £ 5 million or more in the first half have almost matched the 308 – £5mn -plus deals struck in the entire 2019, according to estate agents Savills. A record number of 249 homes worth £5m and  89 homes worth £10mn or more were sold with sales almost coming from domestic buyers. Financial analysts are predicting that house sales will slow as interest rates rise. Buyers in the mass market are facing both higher mortgage costs and the squeeze on savings caused by inflation.

The wealthy are less reliant on borrowing, reducing their exposure to further interest rate rises.

People believe the London property market is not going to crash overnight and with inflation having cash in the bank is not a sensible option.

Buyers today are paying on average 14 per cent less for Prime London homes than they were six years ago, after the pandemic and 2008 crash.

Buyers today are paying on average 14 per cent less for Prime London homes than they were six years ago, after the pandemic and 2008 crash.

UK lenders struggled to cope with demand as mortgage costs soar amid record rises in home loan rates.