LONDON HOUSE PRICES 2026

Prime Central London (PCL) has just come through what has been dubbed a lost decade.

PCL property prices are now at a level similar to 11 years ago, in 2014.

Prime Central London (PCL) taking in Mayfair and Marylebone (W1), Belgravia (SW1), Chelsea (SW3, SW10), Knightsbridge and South Kensington (SW7) and Kensington (W8) and Notting Hill (W11)

This price volatility is mainly due to numerous economic and political events since the global financial crisis in 2008.

The various peaks and troughs show there is demand, but just when the market shows signs of recovery, another event cools the market.

The Autumn Budget - No Mansion Tax

The property industry, especially those in the super-prime sector, was bracing itself for a long-anticipated “mansion tax”. Rumours circulated for over a year about what it might entail, but very little detail was ever known or confirmed. However, there was only one recurring theme: it would affect properties valued at £2m or more.

The budget revealed no “mansion tax,” only a Stamp Duty Surcharge, as below.

Property Value	Rate £	Extra PCM
£2.0 – 2.5M	£2,500	£208
£2.5 – 3.5M	£3,500	£292
£3.5 – 5M	£5,000	£417
£5m+	£7,500	£625

Many feel the property industry got away lightly in the Autumn Budget, especially the Super-Prime sectors above £10m.

The additional costs for £10m+ properties are fairly insignificant compared with the overall running costs of maintaining a luxury home in Prime Central London.

Buying opportunities for some!

PRICE CAUTION

“I wish I had bought 10 years ago!” Well, now you can, but seek good advice first.

Some areas have been affected more than others. The London market is well known for being fragmented. As a result, it is impossible to apply a single figure to every area in Prime Central London, as postcodes have performed differently in recent years. In addition, houses and apartments also show different price trends in the same area.

SUPER PRIME PRICES

You also need to consider that, in some situations, the super-prime market of £10M+ does not always fall; it merely slows. This slowdown then affects the average £psf (Pound per square foot).

Look at it like this. Super prime property commands the highest £psf, and wealthy owners rarely NEED to sell. During a slow or falling market, the owner can afford to ride it out, so there are fewer £10m+ sales. The lack of £ 5,000 psf sales lowers the area’s average psf.

If you are considering buying in a specific area, please contact us for the latest Area Price Report and up-to-date prices.

MORE CHOICE

Supply levels have remained constant over the last 5 years. Although the number of listings did start to rise at the start of the year, due to overpricing and hesitancy. However, the ratio of listings to sales dropped in the second half of the year as properties were withdrawn in the run-up to the budget. Q4 saw more withdrawals than sales, as sellers prepare to take time off over the holidays and before relisting in January.

One visible trend The Buying Agents saw in the last half of the year was the increase in number of £5M+ homes being sold off-market.

Where next for London property prices?

If you are considering buying a property in London, please feel free to arrange a no obligation consultation. This is a 20 min call or Zoom to discuss your requirement and local market conditions, then answer any questions.