London’s poshest district is nearly 100 times pricier than the north of England

Knightsbridge has been named the most expensive district in London and the UK, with the average house price coming in at a whooping £21.4m.

That’s nearly 96 times the average price of a home in the north of England.

The West London region is home to the capital’s most expensive residential site, Knightsbridge’s One Hyde Park (although this will soon be trumped by 1 Mayfair, the £2bn super-luxury scheme being ring-led by the Phones4u billionaire John Caudwell).

Unsurprisingly, London postcodes dominate the list of the most expensive regions for prices in the UK, with Ilchester Place and Grosvenor Square taking the second and third spots, respectively.

Outside of the capital, East Road in Weybridge is the most expensive. The average home here comes in at just over £8m, still a considerable price tag.

Who is buying £20m houses in London?

Around 60 per cent of luxury deals in 2023 were with buyers from just four countries: The United States, Saudi Arabia, the United Arab Emirates and China. Together, buyers from these regions purchased around £780m of luxury property in the year.

Luxury estate agent Trevor Kearney said: “Interestingly, we’re seeing our clients prioritise education and good schools and the UK’s education system is second to none – that’s a huge retainer, even with the added VAT fees,”

Plus, Americans are looking toward rather pulling away from prime property in the wake of Donald’s Trump victory in the November election.

Estate agents Cluttons has experienced a “noticeable uptick in demand” post-election, according to its head of London residential, Laura Dam Villena.

In 2022, North Americans invested more than Europeans in British property, at £40bn compared to £30.5bn, which is 31 per cent above the five-year average for US citizens, according to real estate firm Savills.

Will prices continue to go up?

In 2023, the average pricetag on the UK’s ten most expensive streets (all, again, in London) was £14.5m.

This year, the figure has risen to £16.5m – a 13.7 per cent rise. The average house price in England has risen by 2.5 per cent in the same time frame, according to the ONS.

There are a few reasons for this. Firstly, the city has “continuing appeal” and therefore high competitiveness at the top end of the market, head of mortgages at Lloyds, Amanda Bryden said.

This competitiveness has been propped up by a post-pandemic boost in wealth for the world’s super rich. Because foreign wealth is a key factor in driving current demand, global wealth trickles into the super-prime market in a way it doesn’t for the general UK housing market.

The UK remains a relatively safe place to live, and wealthy individuals are attracted by its high-quality education system and its financial credentials – in a self-affirming circle, growing property prices encourage investment, and therefore boost property prices.

Even the relative weakness of the pound against the dollar – while not ideal for the UK – further encourages overseas investment.

In answer: probably – barring an event which discourages investment, migration, or both – prices will continue to reach new heights.