London’s £5m-plus sales market remained surprisingly resilient in the first three months of the year, according to Savills. This comes despite the uncertainties of the global economy, and agents reporting market conditions cooling more considerably over the last few weeks.
The whole market analysis of second-hand and new build sales reveals there were 93 sales in Q1 2025, which is on par with the previous year (92 sales).
“Stronger-than-expected figures are primarily a hangover from the previous quarter, and agents on the ground are reporting much tougher market conditions for new vendors. The impact of global uncertainty and new tax measures has been most keenly felt in the rarefied prime central London market, where the pool of active buyers is shrinking,” comments Nick Maud, director of research at Savills.
“While stock levels have risen over the past two years, they have fallen since the October Budget. This means that despite talk of individuals relocating to more tax-friendly jurisdictions, there has not been a significant exodus of sellers.
“This reflects the fact that there remain plenty of reasons for the global ultra-high-net-worth community to hold a property in London, even if they change their tax residence. London remains a safe haven, but the buying power of both domestic and international players will likely be limited due to the volatility in the global stock market. This is likely to play out more significantly in the coming months.”
While £10m-plus sales remain lower than the previous quarter, transactions remain 18% higher than the same time last year. In fact, there were more transactions at this price point than in any first quarter of the year between 2016 and 2020, according to Savills.
In value terms, £5m-plus sales totalled £0.96bn in Q1, which is slightly higher (3%) than the same period in 2024 and 4% more than the pre-COVID Q1 average. Values remained the strongest between the £10m-15m price band, with overall values (£0.19bn), 64% above Q1 2024 and 33% above Q1 2023.
Source: Savills research
Savills’ research reveals that flats accounted for their highest proportion (48%) of £5m-plus sales for a first quarter since 2015.
“Over the last three months, we have seen more international buyers look to acquire smaller ‘lock up and leave’ London bases, while we are also experiencing a return of the domestic pied-a-terre buyer who was notably absent during the pandemic and for the period following,“ said Alex Christian, co-head of Savills Private Office.
Belgravia has maintained its position as the area with the highest proportion of £5m-plus sales, accounting for 13% of sales at this price point, followed by Chelsea, which has risen to the second, up from 4th place in 2024.
Westminster came in fourth, accounting for 6% of all sales at this price point. This is the highest proportion for Westminster since 2020.
“Domestic buyers continue to drive activity at the top end of the market, with particular demand for best-in-class properties in Chelsea. The area’s village-like atmosphere, combined with excellent schools and a strong selection of restaurants, makes it especially attractive to families,” continues Alex Christian.
“In today’s more uncertain market, it’s the standout properties in the most sought-after locations that are outperforming the rest. These buyers are largely focused on securing long-term family homes, showing a clear commitment to staying in the area for years to come.”
