Sales of London's most expensive homes slumped last year as wealthy buyers were spooked by Chancellor Rachel Reeves' proposed mansion tax, according to new data from high-end estate agent Savills. Transactions involving properties worth £5 million or more fell 11 percent throughout 2025, with just 412 such homes sold compared to 463 the previous year. 09 billion on homes priced at £5 million or more across 2025, representing an 18 percent decrease or nearly £900 million less than in 2024.
The steepest decline was seen in the £10 million to £15 million market, where sales dropped by almost a third (31 percent). ' The decline comes as Chancellor Rachel Reeves introduced a new high-value council tax surcharge for owners of properties valued at over £2 million in the Autumn Budget, set to take effect in April 2028. The measure, dubbed a 'mansion tax,' will impose annual surcharges ranging from £2,500 to £7,500 depending on property value.
Savills reported that activity in London's prime postcodes picked up in the closing weeks of the year as some wealthy home hunters 'put Budget uncertainty behind them,' with a 7 percent increase in market activity in the last three months of 2025.