London’s £5m-plus sales market fell to a five-year low in 2025, according to Savills, as activity returned to pre-pandemic levels. Activity increased in the final weeks of the year following greater clarity on budgets.
Savills’ analysis of both second-hand and new-build properties shows there were 412 transactions at £5 million or more in 2025, down 11% on 2024. The £5–10m segment declined 5%, while the £10–15m segment saw the largest drop at 31%.
Quarterly figures indicate a 7% rise in transactions in Q4 compared with Q3, with Q4 also recording the highest number of £10 million-plus transactions in the year. Total spending on £5m-plus homes reached £4.09bn, an 18% decrease on 2024.
Frances McDonald, director of research at Savills, said: “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.
“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.
“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 £5m-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 see
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