In its 19 September 2026 feature, “In London’s poshest postcodes… the Brits are back”, The Times examines how a recent shift in value of prime property in central London, is creating new opportunities for domestic buyers back.
Research by Savills shows that average prime central London property values are around 26% below their 2014 high. Against this backdrop, British buyers now account for close to half of transactions in the market for the first time in a decade.
Deeper price cuts
Price adjustments have been particularly noticeable in parts of prime London traditionally favoured by international buyers. The Sunday Times cited that values in St John’s Wood have fallen 7.3% this year, compared with a 3.7% decline in Notting Hill.
Changes to the tax environment have also affected overseas demand. Higher stamp duty costs for additional properties and the abolition of non-dom tax status have contributed to some international buyers reconsidering whether to purchase in London, while domestic buyers are increasingly taking advantage of more attractive pricing.
Camilla Dell, Managing Partner at Black Brick, told The Sunday Times:
“The drop in values across prime London is a sweetener for a lot of clients who have been waiting for some time to buy,”
Little pressure to move
Despite the recent rise in activity, transaction volumes remain subdued over the longer term. One factor is the continuing difference between buyer and seller expectations.
Many owners of prime central London property have the financial flexibility to wait rather than accept an offer below their expectations. This can leave properties on the market for extended periods, while informed buyers remain focused on securing value.
Greater clarity around property taxation has, however, helped improve confidence. Dell says Black Brick recently signed three buyers in the space of a week, reflecting a more active market.
Dell told The Sunday Times: “Last year there was so much kite flying and uncertainty. This year Andy Burnham has been upfront and said that he is not going to make changes to stamp duty, and so it is very much business as usual.”
Star-spangled London
While the proportion of international buyers has declined across many nationalities over the past decade, American demand remains an important exception. For buyers purchasing in US dollars, London property is significantly cheaper than it was at the market’s 2014 peak.
London nevertheless competes in an increasingly international market, with wealthy buyers able to compare opportunities in the capital with cities including Paris, Milan, Miami and Singapore. Taxation, visas, economic prospects and lifestyle all play a role in these decisions.
A further change is the type of purchaser active in prime central London. Rather than buying primarily for investment or short-term appreciation, many current buyers are seeking a home they intend to occupy.
As Dell explains:
“Speculative investors have left the market,”
“The buyers that are left are looking for a place to live, and they have stopped talking about politics and instability. That feels like the norm now.”
This shift towards owner-occupiers could prove important for the next phase of the prime central London property market. With values substantially below their previous peak and motivated buyers finding opportunities to negotiate, lifestyle, quality and long-term use are increasingly central to purchasing decisions.
