Activity in London’s £5m-plus property market remains subdued, as buyers wait ahead of the upcoming Budget, according to Savills.

Analysis of both second-hand and new-build sales shows 93 transactions in the £5m-plus range in Q3 2025, down 18% compared with the same period in 2024. Sales remain 72% higher than in 2019.

Year-to-date, £2.94 billion has been spent on homes priced at £5m or more, a 15% decline compared with last year. The drop is largely driven by weaker sales of properties priced over £10m.

“While the summer is typically a quieter time for London’s most rarefied markets, the last couple of months have indicated a decline, even accounting for seasonal trends,” said Frances McDonald, director of residential research at Savills.

“The very top end of the market is feeling the biggest impact. Both the number of sales and values are only slightly subdued between £5-10m, but activity above £10m has seen a much steeper dip in momentum. The number of potential buyers in this segment of the market had already fallen since the end of the non-dom regime, and now the existing pool of buyers will be biding their time to see what the upcoming Budget brings.

“That said, there is still a layer of demand from opportunistic buyers looking to take advantage of any compelling value currently on offer.”

The largest proportion of sales above this price point took place in Kensington (12%), marking a shift in buyer direction away from Chelsea (10%) and Belgravia (10%), which have reigned for the last 5 years.

Overall, the traditional prime central London postcodes of Kensington, Belgravia, Mayfair, and Chelsea accounted for 42% of sales so far this year. This is lower than the 48% seen during the same period last year, as ‘prime’ buyers expand their search areas to neighbourhoods such as Notting Hill, Bayswater,  South Kensington, and Marylebone.

“Domestic buyers looking to acquire their main residence are taking advantage of softening prices and reduced competition and are taking up a bigger share of the market. As a result, demand has shifted towards second-hand houses in areas that are typically less synonymous with high-end international investors,” said Richard Gutteridge, co-head of prime central London at Savills.

“But, despite a shallower pool of active buyers, vitally, there has not been a rush of new stock brought to the market since the first Budget of the new government, reflecting London’s enduring appeal. But still, the amount of unsold stock on the market has risen, leading to a disconnect between supply and demand.

“In recent months, we’ve continued to see multiple transactions exceeding £30m, as exceptional, best-in-class homes in the capital maintain their appeal among the global elite. Despite market fluctuations, London’s lifestyle appeal remains a cornerstone of its enduring attractiveness.”