London mansions struggle to sell as sellers cut prices by millions

Owners of London’s luxury homes are cutting prices by millions of pounds as buyers become more cautious and supply outstrips demand. A flat at Queen’s Gate Gardens in South Kensington has been reduced by nearly £1m and is now listed at £4.4m.

A nearby house has been cut from £20m to £14m. In Notting Hill, a stucco-fronted property first offered at £16m two years ago is now priced below £14m.

Central London prices fall

Office for National Statistics data shows prices in inner London fell 8.3% in the year to June, while the UK average rose by about 2%. Prices fell 25.4% in Westminster, 20.4% in the City and 14.7% in Kensington and Chelsea.

LonRes chief executive Anthony Payne said London property had become overvalued after rapid growth in the mid-2010s. Brexit, the Covid pandemic, higher property taxes and rising borrowing costs then added pressure.

Owners who bought at the market peak could face losses of up to 25% if they sell now, according to Savills estimates. Beauchamp Estates managing director Jeremy Gee said the departure of wealthy people after the abolition of the UK’s non-dom regime had also weakened demand.

Buyers negotiate for longer

Prime properties spent an average of 186 days on the market in the first half of 2026, up from 178 days a year earlier. The average discount to asking price widened from 8.3% to 10.4%, according to LonRes.

Demand remains for the best properties. Buying agent Camilla Dell said international buyers from the US, Singapore and Nigeria were still active, while agents said exceptional homes with prestigious addresses could attract offers above asking price.

Super-prime deals remain active

The billionaire end of the market has remained busy. Nick Candy sold his Chelsea home for more than £270m, while the Holme mansion in Regent’s Park is reportedly nearing a £190m sale after changing hands for £139m in 2024.

JLL said sales of homes priced at £10m or more rose 50% in the quarter to June compared with the same quarter in 2025. Transactions in the £15m-£20m range increased by almost 40%, according to Savills.

At the same time, seven in 10 of Beauchamp’s ultra-prime clients are choosing to rent rather than buy, citing maintenance costs, stamp duty and property taxes. Prime rents rose 1.6% in the year to June, while tenancies costing at least £5,000 a week increased by 17% last year.

The outlook for the wider prime market has deteriorated. Strutt & Parker now forecasts 4.4% price growth in prime central London by 2030, compared with its earlier estimate of 9%-12%.