Activity has started earlier than usual this year. Pent-up demand following the Budget meant we were busy right through Christmas and New Year, rather than seeing momentum build from the third week of January, as we normally would.
We began several new searches in mid-December and for one client, we carried out a first round of viewings on the 18th December followed by second viewings between Christmas and New Year – which is highly unusual.
Buyers remain cautious and price sensitive but are increasingly recognising value and acting with intent. Demand continues for turnkey, well-located pied-à-terres from British clients, particularly those working in finance and commodities, with budgets of £3m – £10m.
We’re also seeing international interest return. These buyers are highly discretionary, so their activity is a good barometer of confidence in London’s long-term investment and lifestyle appeal.
NEW BUILD SPIKE
New build developments have seen a spike in interest and viewing numbers, with location, amenities, design quality and resident experience all central to decision-making.
Many family buyers sat on the sidelines in Q4 last year due to Budget uncertainty and fears of an expensive mansion tax which didn’t materialise.
With secondary school offers due in mid-February, we are working with several families keen to be ahead of the curve – identifying the best options for them now so they are ready to make an offer as soon as school places are confirmed, rather than starting their search at that point.
CREDIBILITY IS KEY FOR DISCOUNTS
Buyers are showing greater flexibility around budgets, supported by growth in personal wealth thanks to the strength of global equity markets and the continued rise in the value of commodities.
Seller expectations have adjusted considerably over the past six months, but there remains a clear divide between genuinely motivated sellers and those still unrealistic on pricing, often attempting to recoup what they paid for their property – and in some cases their stamp duty on top.
Last year, 80% of the properties we acquired for clients were sold for a loss relative to the price paid by sellers who bought in the last decade. Buyers should therefore be mindful of this and approach negotiations strategically.
Purely opportunistic buyers who are focused on simply lowballing the market are quickly earning an unfavourable reputation for themselves – and selling agents are reluctant to prioritise them or back any offer they make as a result. In this market, track record and credibility remain critical in securing the best discounts.
US BUYERS BEWARE
Demand from US buyers remains strong heading into 2026 with Americans relocating here for jobs and schools, purchasing a London base for themselves or for children attending British boarding schools.
Yet many remain unaware of the UK’s clear distinction between buy and sell-side representation, limiting their access to the wider market and weakening their negotiating position.
Recently, we were appointed by an East Coast-based client seeking a new build apartment in prime central London who had initially been searching independently. They had arrived in London focused on a particular development, but on viewing it, found the layouts didn’t work for them. The sales agent arranged viewings for them at two alternative developments, which the client assumed was simply a helpful gesture.
“Following advice from a London lawyer, they decided to engage a buying agent to represent them.”
Following advice from a London lawyer, they decided to engage a buying agent to represent them, and only then did they realise the selling agent would have received a referral fee had they proceeded with a purchase at one of the alternative developments – an arrangement that had not been disclosed to them.
This would have put them at a distinct disadvantage, having seen only a narrow segment of the market, and reduced the margin for negotiation as the selling agent would have had to share their fee with the introducer.
In the States, realtors typically act on both sides of a transaction, creating an assumption of independence that does not translate to the UK market.
Understanding the distinct buy-side and sell-side representation in London is critical for overseas buyers looking to make informed decisions and ensure their best interests are represented.
TURNKEY REMAINS KING
Truly turnkey properties continue to command significant premiums. Buyers want immediacy and convenience, and there is very little appetite for refurbishment at the top end of the market.
The planning process remains slow and a cyber-attack in November will further delay planning decisions across Westminster and Kensington & Chelsea.
At the same time, a number of contractors have ceased trading, with remaining contractors mopping up the business but in turn stretching their own capacity – and project completions are slipping as a result.
Those who do have a truly turnkey home will be rewarded for their efforts, with big premiums being paid. One house in St John’s Wood for sale at £35m has had multiple rental offers, with one high-profile celebrity couple offering to pay almost ten times the going rate for an 8 week short let – but the seller is focused solely on a sale, knowing that anything less than turnkey condition will impact the price he receives.
RISE IN FAMILY OFFICES
The growing complexity of residential property management is prompting many family offices to rethink whether this function is best handled in-house.
Rather than viewing it as a purely operational task, more are recognising the breadth of expertise now required to do this well and the value of outsourcing to specialist teams that can combine day-to-day oversight with strategic advice.
A number of family offices with both residential and commercial holdings have sought to consolidate property management to a firm who can manage both under a single umbrella.
“We have seen them come unstuck in some cases.”
However, we have seen them come unstuck in some cases, as the approach and service style required to deal with the nuances and expectations of high-value properties and tenants is very different to the needs of commercial assets.
For those building up their London property holdings, strategy remains key. One international family office was keen to take advantage of stamp duty savings for buying six properties or more in one transaction.
But their focus overlooked the quality of what they were buying and the need to clearly define their priorities in terms of income versus growth, and considering how asset values should be balanced to allow flexibility should equity need to be released over time. In the long run, strategy is far more important than short-term tax savings.
