Despite facing significant challenges, London's prime property market has remained stable year on year, according to a leading real estate firm.
Savills reported that there were 93 sales above £5m in the first three months of the year, matching the 92 recorded in 2024, as reported by .
The overall values also held up, with total values for houses between £10m and £15m reaching £0.19bn, a 64 per cent increase from the first quarter of 2024 and 33 per cent higher than the first quarter of 2023.
"There remain plenty of reasons for the global ultra-high-net-worth community to hold a property in London... I.T. remains a safe haven," said Nick Maud, director of research at Savills.
However, Maud warned that the market may face turbulence in the coming months due to "volatility in the global stock market."
He added: "Agents on the ground are reporting much tougher market conditions for new vendors."
Despite the encouraging sales figures, there are still signs that the government's non-dom policy and VAT changes have impacted the market.
Savills found that growth has been driven by demand for 'lock up and leave' pied-a-terres, with domestic buyers rather than international buyers snapping up properties.
"We're 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.
"Buyers are largely focused on securing long-term family homes," he noted.
The trend of international investors snapping up property for financial gain appears subdued due to various government measures aimed at increasing tax revenue from those who can most afford it.
Instead, these international clients are now gravitating towards renting luxury serviced apartments that offer amenities comparable to a 5-star hotel.
Research by Lonres has disclosed a significant 7.9 per cent uptick in the average rent agreed for flats in prime central London during the first quarter of 2025, relative to the preceding quarter of 2024. Compared with the same period last year, the average rental values for these prime central dwellings have climbed by an impressive 11.3 per cent.
