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Carter Jonas has published its Spring 2026 luxury market update, offering an overview of trends and activity in the UK’s high-end property sector.
The report notes that the past year has been one of recalibration for the prime luxury residential market across London and the wider English regions. Following a strong 2024, both transaction volumes and total investment fell. In Prime Central London, property values softened by around 3% to 6%, and transaction levels declined.
Leading up to the Autumn Budget in November 2025, many buyers adopted a cautious “wait and see” approach, partly due to concerns over potential changes to capital gains tax. Once the Budget proved less disruptive than expected, buyer confidence began to recover, and 2026 opened with renewed optimism.
Looking ahead, the introduction of the High-Value Council Tax Surcharge, affecting properties over £2m, is expected to influence market decisions. Although the surcharge will not take effect until April 2028, the Valuation Office Agency will begin assessments in 2026, and potential buyers are already factoring the estimated £2,500–£7,500 annual cost into their calculations.
London
London’s prime luxury market contracted significantly in 2025, with transaction volumes down roughly 65% compared to 2024. Total investment fell from £7.8 billion in 2024 to around £2.2 billion last year. Sales of properties over £5 million dropped from 750 in 2024 to just over 200 in 2025. The report notes that these figures are not yet final due to a two- to four-month lag in Land Registry filings, and totals are expected to rise as more data is recorded.
Regional England
The slowdown was mirrored across the rest of England for properties valued over £1.5 million. Transaction volumes fell by 55%, from just over 4,300 in 2024 to 1,900 in 2025, while total investment declined to approximately £4.1 billion, down from nearly £10 billion in 2024. As with London, these figures are likely to be revised upward as more sales are registered.
Samuel Richardson, head of sales at Carter Jonas in Mayfair, said: “London’s luxury property market enters 2026 with renewed confidence after several years of subdued activity. Prime central London is forecast to regain momentum as buyer sentiment improves, supported by easing mortgage rates, rising wage growth and softened pricing compared with the post‑pandemic peak.
“International buyers remain a major force, attracted by London’s global appeal and the relative value on offer. Overall, 2026 is shaping up to be a steadier, more optimistic year for the capital’s high‑end market.”
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