Luxury market update
For more insight and professional advice on the luxury property market, the Luxury Property Team at Carter Jonas team are here to support you. Contact us or pop in to our Mayfair office to chat to the team.
020 7529 1538
Leslie Schroeder
Head of Residential Research
Email
020 7518 3234
Email
Lisa Simon
Head of Residential
020 7493 0676
Email
Samuel Richardson
Head of Sales Mayfair
Spring 2026
London’s luxury property market enters 2026 with renewed confidence after several years of subdued activity. Prime Central London is forecast to regain momentum as buyer sentiment improves, supported by easing mortgage rates, rising wage growth and softened pricing compared with the post‑pandemic peak. International buyers remain a major force, attracted by London’s global appeal and the relative value on offer. Overall, 2026 is shaping up to be a steadier, more optimistic year for the capital’s high‑end market.”
Samuel Richardson
Head of Sales Mayfair
020 7493 0676
samuel.richardson@carterjonas.co.uk
The lead-up to the Autumn Budget in November 2025 brought with it a significant ‘wait and see’ approach by many would-be buyers. Concerns over possible changes to capital gains tax created a very sensitive environment over that uncertain period, causing transactions to dip below where we would normally expect them to have been. With the Budget’s impact proving less disruptive than many had feared, this hesitation quickly faded, and 2026 opened with renewed optimism.
Transactional activity at a glance – 2025
London’s prime luxury market saw a significant contraction in 2025, with transaction volumes falling approximately 65% compared to 2024. Total investment followed a similar downward trend, dropping from £7.8 billion in 2024 to roughly £2.2 billion last year. Specifically, sales of properties valued over £5 million fell from 750 in 2024 to just over 200 in 2025. While this decline is largely due to market conditions, it is important to note that these figures do not yet represent the full year. Due to a two- to four-month lag in Land Registry filings, we expect these numbers to adjust upward as more data becomes available.
The luxury market across the rest of England (properties valued over £1.5 million) mirrored the slowdown seen in London. Transaction volumes fell by 55%, dropping from just over 4,300 in 2024 to 1,900 in 2025. Total investment for this sector reached approximately £4.1 billion last year, a sharp decline from the nearly £10 billion recorded in 2024. As with the London data, these 2025 figures will likely be revised upward in the coming months as more sales are registered.
Outside London, the luxury property market in the rest of England (for properties over £1.5 million) has seen total investment volumes reach £1.9 billion across 878 transactions year-to-date.
Pricing data dashboard – 2025
LONDON
ENGLAND (EXCL LONDON)
"…the Autumn Budget in November 2025 brought with it a significant ‘wait and see’ approach…"
"…the Budget’s impact [has been] less disruptive than many had feared…"
St Katherine by the Tower
£15 million
3
4
Chelsea Manor Street
£8.65 million
4
4
Devonshire Place
£7.25 million
4
4
£16,509,624
£6,442,986
£2,244,908
£1.5m - £5m
£5m - £10m
£10m+
Average price
Transactions
160
2,250
44
£8,267,662
£2,046,680
£1.5m - £5m
£5m - £10m
Average price
Transactions
33
1,873
The last 12 months have seen a period of significant recalibration across the prime luxury residential market in both London and the wider English regions. Following a robust 2024, transaction volumes and total investment have seen a marked contraction. In Prime Central London, property values softened by approximately 3% to 6% while transaction levels dipped.
£1.5m - £5m,
proportion of total transactions
58%
42%
London
England excl London
£5m - £10m,
proportion of total transactions
17%
83%
£1.5m - £5m
monthly transactions
London
England excl London
London
England excl London
property type distribution of sales £5m - 10m
36%
12%
Terraced
Flat
Semi-detached
Detached
New vs secondhand sales between £5m - 10m
5%
95%
Secondhand
New build
£5m - £10m
monthly transactions
London
England excl London
0
1,200
800
600
400
200
2020
2021
2022
2023
2024
2025
2020
2021
2022
2023
2024
2025
0
60
50
40
30
10
20
28%
24%
Claridge House
£5.95 million
x
3
Woodstock Mews
£3.795 million
3
2
£1.5m - £5m
£5m - £10m
£1.5m - £5m
£5m - £10m
£10m+
020 7751 8891
Email
Dominic Bruneau
Head of Residential Sales
1,000
70
Looking further ahead, perhaps the most significant looming change to the market is the High-Value Council Tax Surcharge, targeting properties valued at over £2 million. While the change isn’t due to come into force until April 2028, the Valuation Office Agency will begin assessments in 2026. This has already begun to influence market sentiment as potential buyers factor these recurring annual costs (estimated to be between £2,500 and £7,500 per annum), into their long-term calculations.
Shephard Street
£4.5 million
2
3