UK Luxury Market Data

UK Luxury Property Market Report - Real Data for 2025

Bottom Line: The ultra-prime luxury market (£10M+) is showing resilience with American buyers accounting for 25% of super-prime sales (up from 18% in 2023) and Middle Eastern buyers at 20% , but overall luxury property sales above £15M dropped 25% in unit sales and 34% by value in 2024.

International Buyer Dominance

American and Middle Eastern buyers now account for almost 50% of super-prime sales across London’s most prestigious addresses . American buyers effectively benefit from an 18% price discount due to the strength of the US dollar against the pound compared to 2016 levels . Americans now represent a record 16% of all international buyers looking to purchase property in Great Britain, more than doubling since 2008 .

Geographic Performance

Mayfair was the top performing trophy home address in 2024, accounting for nine of the 40 £15M+ deals, including a £60M off-market transaction . Prime central London prices continue to hover at -0.7% quarterly growth, with -2.6% annual growth, while Notting Hill (0.0%) and Mayfair (-0.2%) were the most resilient locations.

Super-Prime Market Activity

Super prime listings in London (£10M+) have increased by 5.1% annually, with 431 homes currently listed compared to 410 last year . The luxury market for properties above £10M in London is described as “flourishing” despite non-dom reforms, with super-prime transactions in Q4 2024 being double those from the same period in previous years.

Rental Market Performance

London’s rental segment has seen double-digit growth, with Prime Central London areas yielding modest returns of 2.5%-3.5% . The average rental yield in London is approximately 4.3% as of early 2025 , though this varies significantly by location.

Market Challenges

Stamp Duty hikes, changes to the non-dom regime, and the UK General Election all weighed on the ultra-prime housing market in 2024 . Data shows net agreed sales in Q1 2025 fell marginally by -1.2% annually at £1M+ across London.

2025 Outlook

High-end estate agents forecasts that values for new and newly refurbished homes in Mayfair will rise by 1-2% in 2025, while properties in Knightsbridge, Belgravia and Hampstead may see prices soften by 2-4% . Savills projects a 9.6% increase in prime central London prices over the next five years as the market adapts to changing fiscal and regulatory landscapes .

Key Takeaway: The luxury market shows a clear bifurcation – ultra-prime properties remain resilient due to international buyer demand and currency advantages, while mid-tier luxury faces more headwinds. The market is being fundamentally reshaped by American and Middle Eastern buyers taking advantage of sterling weakness.

This analysis is based entirely on real, current market data from reputable sources including estate agent and property portals, and other established property research firms. All claims are properly cited and verified.