London’s Luxury Home Market Had Its Worst Year Since Covid
The biggest purchases came from those in film, tech and finance, in a downbeat year for the mansion market.
UK homes worth more than £2 million could drop an additional 5% in value next year as the market adjusts to the mansion tax, according to forecasts published this month by Hamptons.
Photographer: DutcherAerials/Getty ImagesLondon’s luxury property market is set for its worst year since 2020, after a series of tax measures damped sentiment among wealthy and discretionary buyers. It was the second year since 2011 in which no sales above £50 million ($66.8 million) were recorded, according to data from property company LonRes.
While 2024 saw at least four £50 million-plus deals — including one mansion bought for £139 million — the biggest transactions this year were around the £40 million mark. And data from broker Savills Plc show residential sales above £5 million in the first three quarters of 2025 tumbled 18% from the same period a year earlier, putting them on course to be the fewest since the Covid-19 pandemic locked down London.