Prime London homeowners unmoved by mansion tax
The latest look at prime London property supply from Jefferies London has shown that the volume of homes priced at £2m or more listed for sale across Prime Central London (PCL) fell by -9.3% during the fourth quarter of 2025, but £2m+ homes still account for 35% of PCL stock.
Jefferies London analysed current for-sale listings across the London market, looking at what percentage are priced at £2m or more and which neighbourhoods currently boast the highest level of high-end housing stock available to buyers.
The research shows that, across Prime Central London as a whole, the number of homes listed for sale at £2m or more fell by -9.3% between the third and fourth quarters of last year.
Despite the announcement of the ‘mansion tax’ in November’s Autumn Budget – which will increase the cost of owning a property valued at over £2m – only three PCL locations have actually seen an increase in £2m+ stock, namely Pimlico (5.4%), Victoria (4.9%), and Mayfair (3.2%).
Meanwhile, the largest drops have been recorded in Maida Vale (-19.6%), St. John’s Wood (-19.5%), and Fitzrovia (-19.5%).
However, despite stock levels dropping across the vast majority of Prime Central London, £2m+ homes still account for over a third (34.7%) of today’s PCL market.
Mayfair is home to the highest proportion of £2m+ properties (79%), followed by Knightsbridge (61.4%), Belgravia (56.7%), Chelsea (40.1%), and Fitzrovia (37.1%).
Damien, Founder of Jefferies London, commented:
“When November’s Autumn Budget confirmed the introduction of a high-value council tax surcharge on homes valued at £2m+, commonly referred to as a mansion tax, there was a broad expectation that it would result in a significant number of homeowners offloading these high-value properties. Yet, in London at least, this hasn’t come to fruition.
Instead, the sharp fall in £2m+ stock seen during Q4 appears to reflect a slight reluctance among prime sellers to bring property to market amidst a period of political and fiscal uncertainty.
Many owners are choosing to pause rather than price aggressively or come to market when demand is relatively low, particularly as borrowing costs remain elevated and buyers adopt a more selective approach.
As a result, supply has tightened. However, high-value homes continue to account for a substantial share of Prime Central London’s overall market, and as we enter the spring months – a reliably busy time for the property market – we fully expect the market presence of £2m+ homes to grow.”
You May Also Enjoy
Seven things to do if a tree damages your property
Leasing demand rises across all sectors
Don’t Put The Property Market On Pause
Before You Sign: 10 Things Home Movers Wish They Knew
Property expert warns homeowners to lock in amid mortgage rates uncertainty
