Top-end sales support London’s £5 million-plus market
A boost in super-prime sales bolstered activity in London’s £5 million-plus market over Q2 2026, despite ongoing uncertainty.
Over the second quarter of 2026, transaction numbers totalled 107, representing a 45% increase compared to Q1 2026. Despite this, overall transaction levels remain down by -7% compared to the same period last year, as buyers remain cautious in the current geopolitical environment. Furthermore, activity improved throughout the quarter, with the strongest annual uptick seen in June.
Resilience in the super-prime market
While overall activity remained subdued over the second quarter, the top end proved more robust, as buyers who are typically less exposed to geopolitical and economic headwinds were able to take advantage of the value on offer across prime central London. The strongest uptick in activity was seen in the £10 million-plus market, with sales up by 24% compared to Q2 2025.
In terms of value, a total of £1.22 billion was spent on £5 million-plus homes over Q2 2026, a 13% increase on the same quarter last year. The uptick can be attributed to a flurry of £20 million-plus sales completed during the quarter, highlighting the resilience and continued attractiveness of prime central London.
Hampstead enters the ‘top three’
The divergence in demand between flats and houses continued over the first half of 2026, with houses accounting for 71% of sales above £5 million. This represents the highest proportion since 2021 (72%), when emerging trends for more space, access to gardens, and space to work from home underpinned buyer behaviour.
Demand for flats continues to be more subdued, reflective of less demand from investors and international buyers.
Whilst the traditional prime neighbourhoods of Kensington and Chelsea remained the most active parts of the £5 million-plus market, accounting for 12% and 11% of sales respectively, Hampstead entered the top three most popular locations for the first time.
The highly sought-after London village nearly doubled its share, with 1 in 10 £5 million-plus sales taking place in Hampstead. Here, the market continues to be supported by domestic buyers who primarily focus on quality.
Demand remains robust for best-in-class properties, many of which have been held by families for decades and rarely come to market. As a result, limited supply continues to drive competition and strong pricing.
Domestic political uncertainty is likely to remain a constraint for stronger demand.
Neena Heeramun, Analyst, Residential Research
OUTLOOK
Looking ahead, we expect overall demand to remain relatively subdued as buyers continue to exercise caution as a result of the ongoing conflict in the Middle East.
In the short term, we expect to see some continued safe haven flows of wealth to the capital; however, domestic political uncertainty is likely to remain a constraint for stronger demand.
As a result, the market is likely to remain price-sensitive, providing an opportunity for motivated buyers to take advantage of the value on offer across prime central London and act decisively when best-in-class assets become available.
In the longer term, more stable geopolitical conditions and an improving economic outlook will bring increased certainty to the market, with price growth expected to return from 2028. But given the underlying tax environment, we are expecting a gradual recovery in values.
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