Demand for high-end homes in London has edged upward this spring, according to the latest Prime London Demand Index from estate agency Benham and Reeves as buyer confidence begins to return to the capital’s luxury housing market.
The index, which tracks demand by calculating the proportion of £2 million to £10 million homes listed for sale that are already sold subject to contract, rose by 1.8% between the first and second quarters of 2025.
While still 1.9% below levels seen during the same period in 2024, the uptick marks a reversal of the trend seen through much of the past year.
The rebound follows a period of market uncertainty triggered by reforms to the UK’s non-domiciled tax rules – Including a 40% inheritance tax on global assets – and a rise in the stamp duty surcharge on additional properties from 3% to 5% last November.
GEOPOLITICAL VOLATILITY
However, political volatility overseas, including escalating trade tensions in the US and continued unrest in the Middle East, may now be reinforcing London’s reputation as a safe haven for wealth preservation, particularly among ultra-high-net-worth individuals seeking long-term capital security.
Within the £2m–£10m market, South West London led the recovery. Clapham, where demand had flatlined earlier in the year, surged to 36.9% in Q2, making it one of the capital’s most in-demand prime locations.
SOLID RECOVERY
Neighbouring Wandsworth also posted a solid recovery, with a 5.0% quarter-on-quarter increase in demand, bringing it to 31.8%. Chiswick (39.3%) and Putney (37.8%) topped the index as the two most in-demand prime locations in the capital.
But some traditional prime Central London postcodes saw declines, with demand in Holland Park down 3.4% and Pimlico falling 3.1%. Richmond saw the sharpest drop in demand in Q2, falling 10.2%.
On a year-on-year basis, Wapping in East London saw the strongest growth in demand, up 18.5% – suggesting the ripple effect of prime market activity may be reaching into adjacent areas.
SUPER PRIME STILL CAUTIOUS
At the top end of the market – roperties priced above £10 million – demand remains more subdued but stable. Fitzrovia recorded the highest demand at 25.0%, followed by Victoria at 15.6% and Highgate at 9.1%.
There were no recorded sales above £10 million in the second quarter in Wimbledon or Holland Park, underlining the still-fragile state of the super-prime segment.
Benham and Reeves say signs of a tentative return of high-net-worth buyers are encouraging, though the recovery remains patchy and vulnerable to global and domestic policy shifts.
RISING DEMAND
Marc von Grundherr, Director of Benham and Reeves, adds: “Prime London property buyers are still seeing value in the market, reflected by demand rising as we get into the warmer months of the year.
“South West London is most in-demand, where investors are likely seeing more value compared to the highly developed Central London market.
“Prime London is commonly seen as a safe haven to park cash in times of global uncertainty, so it remains to be seen if the market will build up more steam in the months ahead.”
