London Premium Property Prices Drop Up to 25 Percent

London's premium property market is experiencing a sharp decline, with multimillion-pound homes in areas such as Westminster, Kensington, and Chelsea seeing price drops of up to 25.4%. The Office for National Statistics reported an 8.3% fall in property prices across inner London boroughs. This downturn is driven by higher borrowing costs, the abolition of the non-dom tax regime, and proposed mansion taxes on homes valued over £2 million.

Anthony Payne, Chief Executive of LonRes, noted that international investors who previously inflated the market are now deserting it. Jeremy Gee of Beauchamp Estates attributed the decline to wealthy individuals leaving the United Kingdom primarily due to tax changes. While the broader prime market struggles with longer listing times and deeper discounts, the super-prime billionaire tier remains active. This is highlighted by the sale of Nick Candy's Chelsea home for over £270 million, one of the largest single house sales in the country.

Market behavior is shifting as ultra-prime clients increasingly move toward renting to avoid tax liabilities and maintenance, resulting in a 17% increase in tenancies costing at least £5,000 per week. International buyers from the United States, Singapore, and Nigeria continue to target best-in-class trophy assets, though analysts suggest the market may not have reached its bottom yet.