Key Insight
- Domestic and established international buyers are gaining share, with UK-based inquiries rising from 34% to 39% while other countries are declining
London’s prime residential market is entering a phase of recalibration. According to Bloomberg, transactions above £5 million declined by 18% across the first three quarters of 2025, signalling a measured slowdown at the very top end of the market.
The shift comes against a backdrop of mounting policy uncertainty, from changes to non-dom tax status to the proposed mansion tax slated for 2028, factors that are prompting high-net-worth buyers to reassess timing, structure, and geography.
JamesEdition’s proprietary data reveals a more nuanced picture beneath the headline figures. Buyer inquiry volumes remain resilient, but the composition of demand is evolving, with interest increasingly concentrated among domestic buyers and established international investors rather than transient capital.
At the same time, supply has been building steadily. London’s three-month rolling average of luxury listings has nearly quadrupled since early 2024, pointing to a gradual accumulation of inventory; a market adjusting methodically to a new equilibrium.
Where Buyer Interest Is Coming From
Domestic buyers continue to drive the market, with UK-based inquiries rising from 34% to 39% of total activity in 2025. The United States remains the largest international source at 17%, followed by India and Germany.
The shift is most visible in combined buyer interest from countries falling outside of the top 5, which declined from 38% to 33%. This suggests buyers from more distant or diverse markets are pulling back, while core source countries hold steady.
This pattern aligns with the abolition of the non-dom tax regime, effective April 2025, which has reshaped buyer composition. As we explored in our earlier analysis of domestic buyer momentum in the UK market, domestic and established international buyers are increasingly filling the gap left by departing non-dom purchasers.
What London’s Inventory Looks Like Today
Two and three-bedroom properties make up the majority of London’s luxury inventory, accounting for nearly 58% of available listings. The median price for a two-bedroom property sits at €1.6 million, rising to €2.5 million for three bedrooms and €5 million for properties with five or more bedrooms.
Buyer interest, however, skews toward larger homes. Properties with five or more bedrooms represent 20% of inventory but attract 37% of all inquiries. Four-bedroom homes saw the strongest year-over-year inquiry growth at 62%, followed by three-bedroom properties at 44%.
This demand pattern suggests that buyers active in the current market are predominantly seeking family-sized homes rather than smaller units, even as inventory remains concentrated in the two and three-bedroom segments.
What This Means for Buyers
The current market presents a rare combination: elevated inventory and increased vendor flexibility. For international buyers who have already made decisions about their tax residency status, London’s premium addresses remain available at valuations that reflect current market conditions.
As the market adjusts to the incoming mansion tax, buyers with long-term horizons may find opportunities that were less accessible in recent years.
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Data Methodology
This analysis is based on proprietary data from JamesEdition, covering buyer inquiry activity on UK luxury residential listings between January 2024 and November 2025. Inquiry efficiency is measured as the ratio of buyer inquiries to available listings, providing a normalized view of market engagement that accounts for inventory fluctuations.
External market data referenced from Bloomberg provides broader transaction context. While JamesEdition data reflects platform-specific activity, directional trends are consistent with external reporting on London’s luxury property market. Inventory figures reflect listings available on JamesEdition and may be influenced by platform growth alongside market trends.
