London’s £5m-plus housing market recorded a strong second quarter, driven by increased activity at the very top end of the market despite an overall slowdown in prime residential sales, according to Savills.

The property adviser recorded 107 transactions above £5m during Q2 2026, up 45% on the previous quarter.

Sales in the highest price brackets also increased year-on-year, with transactions between £10m and £15m rising by 58%, while sales between £15m and £20m were up 38%.

Despite this improvement, overall sales across the £5m-plus market remained 7% lower than a year earlier. However, activity strengthened towards the end of the quarter, with June sales increasing by 6% compared with June 2025.

In total, £1.22bn was spent on homes priced above £5m during the quarter, making it the strongest three-month period for the market since the final quarter of 2024. Savills attributed much of that increase to a number of transactions exceeding £20m.

Frances McDonald, director of research at Savills, said the figures reflected a split market, with demand remaining strongest for exceptional properties while activity in the £5m-£10m bracket remained more subdued.

She commented: “The prime housing market has become increasingly cautious over the past year, reflected in lower levels of activity and price growth in the £5–10 million market. However, the surge in transactions at the very top end provides a strong reminder of London’s enduring appeal to the global wealthy.

“Buyers continue to recognise the relative value on offer in London compared with other global cities and are willing to act decisively when exceptional ‘trophy’ properties come to market. But while super-prime transaction volumes have strengthened, activity in the first half of the year remains below the levels seen in recent years and is more closely aligned with the pre-pandemic average, suggesting a market that is improved, rather than accelerating.

“In the near term, we may see some safe-haven flows of capital supporting the market, particularly against a backdrop of ongoing geopolitical and economic uncertainty. Nevertheless, renewed questions around the future tax landscape remain a key consideration for many buyers and are likely to continue to temper activity until we have more clarity.”

Flats (29% vs 71% houses) made up the lowest share of sales since 2021, when buyers were prioritising space, gardens and enough accommodation to work from home during the pandemic. This latest drop reflects softer investor demand and fewer purchases from international buyers, says Savills.

Traditional prime neighbourhoods of Kensington and Chelsea remained the most active parts of the £5 million-plus market, accounting for 12% and 11% of all sales respectively.

However, Hampstead has been named as a top three location for £5m sales for the first time. One in ten sales above this price point took place in this sought after London village, nearly double its share in 2025.

“The top end of the Hampstead market continues to be supported by domestic buyers with a clear focus on quality. Demand for the best homes remains robust, with limited supply underpinning competition and strong pricing,” said Neir Gigi, head of Savills Hampstead.

“Several of the homes sold had been held by the same families for decades, creating a rare level of scarcity. Buyers recognised these as exceptional long-term assets and moved quickly to avoid missing out.”