The supply of prime London homes priced at £2 million or more fell sharply in the final quarter of 2025, despite expectations that a new “mansion tax” would push more high-end owners to sell.
Data from Jefferies London shows the volume of £2m-plus properties listed across Prime Central London (PCL) dropped by 9.3% between the third and fourth quarters. Even so, high-value homes still account for more than a third (34.7%) of all PCL stock.
Only three neighbourhoods recorded an increase in £2m-plus listings over the quarter: Pimlico (up 5.4%), Victoria (4.9%) and Mayfair (3.2%). The biggest falls were seen in Maida Vale (-19.6%), St John’s Wood (-19.5%) and Fitzrovia (-19.5%).
Mayfair remains the most expensive pocket of the capital, with 79% of all homes for sale priced above £2m. It is followed by Knightsbridge (61.4%), Belgravia (56.7%), Chelsea (40.1%) and Fitzrovia (37.1%).
MANSION TAX
The figures come after the Autumn Budget confirmed a high-value council tax surcharge on homes worth more than £2m, widely referred to as a mansion tax, which was expected to trigger a wave of selling.
Damien Jefferies (main picture, inset), Founder of Jefferies London, says: “When November’s Autumn Budget confirmed the introduction of a high-value council tax surcharge on homes valued at £2m+, commonly referred to as a mansion tax, there was a broad expectation that it would result in a significant number of homeowners offloading these high-value properties. Yet, in London at least, this hasn’t come to fruition.”
SELECTIVE APPROACH
And he adds: “Instead, the sharp fall in £2m+ stock seen during Q4 appears to reflect a slight reluctance among prime sellers to bring property to market amidst a period of political and fiscal uncertainty.
“Many owners are choosing to pause rather than price aggressively or come to market when demand is relatively low, particularly as borrowing costs remain elevated and buyers adopt a more selective approach.
“As a result, supply has tightened. However, high-value homes continue to account for a substantial share of Prime Central London’s overall market, and as we enter the spring months – a reliably busy time for the property market – we fully expect the market presence of £2m+ homes to grow.”
