London’s £5 million-plus sales market hit a five-year low in 2025, says Savills, as activity returns to a pre-pandemic pace. However, activity gained momentum in the final weeks of the year as buyers put budget uncertainty behind them.
Comprehensive whole market analysis (second hand and new build) by Savills reveals that there were a total 412 £5 million-plus transactions in 2025, which is 11% fewer than 2024, as the market reacted to heightened uncertainty.
Overall, transactions for the less discretionary £5-10 million market held up strongest, down just 5% on the year. By contrast, activity in the £10–15 million market saw the steepest decline (-31%).
Activity in the last three months of the year increased on the quarter (7% increase Q4 vs Q3) amid post-Budget clarity. Q4 also recorded the highest number of £10 million-plus transactions of any quarter in the year.
In total, buyers spent £4.09 billion on homes priced at £5 million or more – an 18% decrease on the year prior.
£5m+ sales in London by year
“Uncertainty over taxation and changes to the non-dom regime contributed to a slower £5 million-plus transaction market in 2025, with volumes hovering well below the five-year average”, comments Frances McDonald, director of research at Savills.
“Since the November Budget we have not seen a rush of stock coming to the market – and the ‘better than feared’ result did lead to an uptick in activity over the last couple of weeks of the year, that has continued into 2026. A testament to the confidence in London’s long-term appeal,” comments Frances McDonald, director of research at Savills.
“Activity among best-in-class trophy assets picked up most significantly in the last three-months, underpinned by scarcity and continued confidence in London’s most prized postcodes. Price adjustments at the top end have also unlocked more demand, with many taking the view that prices are starting to stabilise and are taking advantage of the value on offer.
“We expect pragmatism to remain the most important attribute in achieving a successful sale at the top end of the market in 2026, especially as it remains to be a buyer’s market.”
Mayfair crowned as top super-prime market in 2025
Mayfair (12%) saw the highest proportion of £5 million-plus sales in 2025, followed by Chelsea (11%) and Kensington (10%). This is the first time that Mayfair has come out top, since Savills records began.
Liza-Jane Kelly, head of London residential at Savills, comments: “Mayfair remains to be the ultimate discretionary market, and the families who have owned here for generations continue to see it as irreplaceable.”
“While we have seen some owners reconsider their position in reaction to changes in taxation, many have been reluctant to exit a market that will be more expensive to re-enter in the coming years. Rather, these residents are carefully assessing their portfolios and moving between destinations.”
“Lifestyle factors continue to drive families from the Middle East, often seeking secondary residences for the next generation. At the same time, increased tax uncertainty in parts of the US, combined with continued currency advantages, has driven a notable uptick in American buyer activity compared with recent years.