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Prime property price falls have slowed across the country post-Budget, according to the latest Savills research, reflecting that changes to the taxation of high-value homes were better than feared.
The capital’s more domestic prime housing markets (beyond central London) saw values fall by 0.2% in Q4 (up from -0.7% the previous quarter), while prime regional locations saw values dip -0.6% (vs -1.4% in Q3).
Price falls across Prime Central London have also eased, with values down 0.9% in Q4, compared with falls of 1.8% three months earlier.
That said, prices in the capital’s most traditional prime neighbourhoods remain 24.5% below their peak, meaning that properties in these locations have now lost a quarter of their value since 2014.
| Q4 2025 | PCL | North West | South West | West | North & East | Outer prime London |
| Quarterly growth, Q4 | -0.9% | -0.3% | -0.2% | 0.1% | -0.3% | -0.2% |
| Quarterly growth, Q3 | -1.8% | -1.3% | -0.4% | -0.4% | -0.8% | -0.7% |
| Annual growth | -4.8% | -2.9% | -0.6% | -0.4% | -1.9% | -1.3% |
Source: Savills Prime London Index, Q4 2025
“Our latest survey of prime buyers and sellers* following the Budget shows a shift in confident, with a net 12% more people now committed to moving over the next two years. The biggest lift has been among buyers in the £2m-plus market who had put plans on hold as they braced for the worst,” said Frances McDonald, director of research at Savills
“Agents, particularly in outer prime London neighbourhoods, are reporting a pick-up in viewings and exchanges since the Budget announcement. But despite tax changes being ‘better than feared’, demand remains thin on the ground in more rarefied prime central London postcodes, with the pool of buyers already much shallower since the end of the non-dom regime.
“Much of the Budget’s impact on prices had effectively already been built in after rumours started circulating late Summer. But it will take some time for the market to fully absorb the changes, with moderate falls expected to continue in the New Year.”
Outer prime London benefits from post-Budget bounce
Properties in Chiswick (1.3%) benefited from the strongest growth in Q4. This market, which is synonymous with £2 million-plus family homes, reported a backlog of buyers bouncing back into action upon the news High Value Council Tax Surcharge would have a more limited impact.
While in Prime Central London, the more domestic neighbourhoods of Marylebone (0.0%), Bayswater (-0.2%) and Notting Hill (0.2%) held up strongest on the quarter, and the year.
Prime regional price falls have slowed across the country post-Budget, according to the latest Savills research, reflecting that changes to the taxation of high-value homes were better than feared.
| Q4 2025 | Suburban | Inner Commute | Outer Commute | Wider South | Midlands/ North | Scotland | Wales | All Prime Regional |
| Quarterly growth,
Q4 |
-0.5% | -0.7% | -0.5% | -0.9% | -0.5% | -0.2% | -0.5% | -0.6% |
| Quarterly growth,
Q3 |
-0.9% | -1.6% | -1.5% | -2.2% | -0.5% | -0.2% | -0.4% | -1.4% |
| Annual growth | -2.7% | -3.5% | -5.1% | -6.8% | -1.3% | 0.0% | -2.1% | -3.9 |
Source: Savills Prime Regional Index, Q4 2025
Overall, Scotland has been the strongest performing prime market in 2025 and is the only part of the UK where values have held steady in 2025, according to Savills research.
This growth has been largely driven by the Edinburgh City market, which was the strongest regional market this year (2.1% growth on the year).
“Despite its stronger performance, buyers of prime properties are likely to remain cautious until after the Scotland Budget in January with speculation that the Government will follow suit with additional taxes on more expensive properties. Prices across Prime Scotland have held steady in 2025 but the prime Edinburgh City market has outperformed mainly due to constrained supply and a reduction in the level of available stock,” comments Faisal Choudhry, director of residential research at Savills
“Looking ahead, the prime Scotland market will maintain strong fundamentals, with well-presented and competitively priced properties attracting appealing offers. Following the Budget, with the benefit of more clarity, the market should move forward in the main, spring selling season.”
Country House market shows early bottoming out
The Country House market – which experienced some of the most significant price falls this year – has also seen the pace of price declines ease in the final quarter as buyers have become more confidence in cashing in on the value on offer, post Budget.
Prices fell by 0.6% over the past three months, which is a marked improvement on Q3 (-2.8%) and Q2 (-4.2%), signalling that this market is starting to bottom out.
“The country house market has seen some of the most improved activity post-Budget after a very subdued year. But despite falls easing, values remain 8.2% lower than the same time last year, meaning that there is notable value on offer,” comments Frances McDonald, director of research at Savills.
“In 2026, we expect seasonal patterns to dictate activity less than they usually would, and the market is unlikely to wait until Spring to pick back up.
“Activity should be broadly calmer and more predictable next year. A steadier mortgage market, quick to price in expected base-rate cuts, will offer support. However, economic uncertainty and new property tax thresholds are likely to keep short-term price growth in check. As a result, pragmatism will be key to securing a successful sale at the top end of the market.”
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