Prime London buyer demand climbs in Q4, despite threat of Mansion Tax

The latest Prime London Demand Index by London lettings and estate agent, Benham and Reeves, reveals that buyer demand across London’s most prestigious neighbourhoods climbed by 1.2% during Q4, driven by sharp increases across Chiswick, Regents Park and Maida Vale.

The Prime London Demand Index* by Benham and Reeves monitors demand for London’s most expensive properties based on the level of market activity seen between the £2m to £10m threshold and the super prime market of £10m+. Demand is based on the proportion of all homes listed for sale across the prime market that have already been sold subject to contract.

Prime market (£2m to £10m)

The latest index shows that during Q4 2025, demand for prime London properties sat at 13.2%, having increased by 1.2% versus Q3, albeit remaining some 1.3% down versus Q4 2024.

Chiswick saw the highest demand for prime London properties, with 43.3% of all homes listed between £2m and £10m securing a buyer, followed by Islington (42.4%), Putney (42.2%), Wandsworth (39.6%) and Barnes (36.6%).

In terms of quarterly momentum, Chiswick also topped the table, with prime homebuyer demand increasing by 11.4%. Other areas to see positive momentum included Regent’s Park (+11%), Islington (+6.6%), Wandsworth (+4.2%), Fitzrovia (+3.8%), Richmond (+3.3%) and Maida Vale (+3.1%).

At the other end of the spectrum, the sharpest quarterly declines were seen in Battersea (-7.6%), Clapham (-5.3%) and Canary Wharf (-4.2%), while Notting Hill (-3.8%) and Holland Park (-3.5%) also saw notable pullbacks.

Super prime market (£10m+)

Across London’s super prime market, demand during Q4 2025 sat at 3.3%, having seen a marginal decline on both a quarterly (-0.7%) and annual basis (-0.9%).

Highgate was the most in-demand super prime market, where 16.7% of homes priced at £10m or above had secured a buyer, followed by Marylebone (8.7%), Regent’s Park (8.3%), Hampstead (6.3%) and Kensington (4.8%).

Quarterly uplifts in buyer activity were strongest in Marylebone (+8.7%), Regent’s Park (+8.3%), Notting Hill (+4.2%), Highgate (+1.3%) and Knightsbridge (+1%).

Marc von Grundherr, Director of Benham and Reeves, commented:

“Despite the renewed noise around further taxation on higher value homes, prime London demand strengthened as we moved through the final quarter of the year, with buyers clearly prepared to act on the right property at the right price.

The strongest performance continued to come from lifestyle-led neighbourhoods, particularly across South-West London, where buyers can secure more space without compromising on connectivity, schooling or amenities, and this is helping to keep activity moving even while headline policy risk remains.

While a Mansion Tax may still be some way off in practical terms, the likelihood is that it will encourage some buyers to advance their plans rather than delay them. However, whilst London’s prime market has always been highly responsive to sentiment, it is also remarkably resilient, and our latest research suggests interest is holding firm as we start a new year.”