Prime London listings fall amid Mansion Tax rumours

Prime London properties for sale fell 3.4% in the three months to September of this year amid rumours of an extension to Mansion Tax.

Chancellor John Healey was said to be considering lowering the threshold of the Mansion Tax from £2million to £1.5million.

The tax, which is also known as the High-Value Council Tax Surcharge, is due to apply from April 2028.

Healey is since reported to have dropped the idea , but not until earlier this month. So, the impact may have still been felt in the third quarter.

Figures from Benham and Reeves show the number of prime properties in the Capital for sale was 3,778, down 3.4% compared with the previous quarter.

Marc von Grundherr, Director at Benham and Reeves (pictured), says: “The third quarter has highlighted the varied nature of London’s prime property market, with available stock falling overall, but individual locations moving in very different directions.

“What’s particularly interesting is the contrast between markets such as Kensington, Notting Hill, and Chelsea, where the number of prime listings increased, and areas including Mayfair, Marylebone, and Fitzrovia, where stock contracted more sharply.

The third quarter has highlighted the varied nature of London’s prime property market.”

“This reinforces the importance of looking at local market conditions rather than treating prime London as a single, uniform market.”

Prime properties available for sale declined across 11 locations, with Fitzrovia recording the sharpest fall, as available stock was down 16.5%, followed by Marylebone down 13.4%, Mayfair down 13.3%, Pimlico down 12.8%, and Victoria down 9.9%.

Regents Park also saw a notable reduction of 6.3%, while St John’s Wood recorded a decline of 3.4%.