Walk through the gilded streets of Belgravia, Knightsbridge and Mayfair, and it’s eerily quiet. That is, except for the sound of estate agents clicking their heels, waiting for the British economy to grind back into action.
Billionaires, multi-millionaires and even plain millionaires have been leaving the country in droves since the last election. That means that at the top end of the London housing market – ‘prime’ or ‘super-prime’ – there are far more houses and flats for sale than there are buyers.
Little wonder, then, that some agents are offering huge reductions on luxury homes while more and more well-heeled owners are sitting tight, letting their properties remain empty.
And, it seems, they have reason to worry. By some measures, prime prices in the most popular neighbourhoods in the capital have fallen by as much as a 60 per cent in a year, property brokerage firm Jefferies London says.
Put simply, the luxury property market is careering towards a crisis – and many believe Labour is partly to blame, although historically high stamp duty under the Tories is also playing a part.
‘The brutal truth is that wealthy people from overseas are turning against London,’ says Charlie Parkin, a buying agent. ‘There’s just too much uncertainty so they’re off to places like Milan and Dubai. I have just lost two good clients who have turned their backs on Britain.’
The damage was done at Rachel Reeves’ Budget last autumn – and the downward slide has only continued. The hike in National Insurance contributions, the rise of the minimum wage and the fear of crime have all encouraged the wealthy to check out. Add to that the abolition of the 200-year-old ‘non-dom’ system – which allowed individuals whose permanent home was outside the UK to avoid paying tax on overseas income – and the rumoured introduction of a 2 per cent ‘wealth tax’ on assets over £10 million and what began as a trickle of wealthy departures has turned into a flood.
Among them is John Fredriksen, the Norwegian-Cypriot marine tycoon, who announced he is selling his ten-bedroom mansion in Chelsea with an asking price of £250million and moving to the United Arab Emirates. The 81-year-old said: ‘Britain has gone to hell.’ The average sold price of homes in Mayfair is down by 60 per cent this year, with Chelsea down by 47 per cent. Belgravia has dropped by 44 per cent followed by Westminster (28 per cent), Kensington (21 per cent) and Hampstead (23 per cent).
Jefferies London, who carried out the analysis, stressed this is primarily a ‘transactional issue’ – that is, the figures are skewed by the low volume of high-end sales.
‘The knock-on effects are extensive when these wealthy people leave the country,’ says Paul Finch, managing director of private buying and tax-advising agency Liberty Rock. ‘Housekeepers, gardeners and all kinds of other day-to-day services are being lost. The Labour government says it wants to look after the working classes – but that’s just words. And there’s a lot of politics of envy going on.’
So where are we seeing the greatest falls in London’s millionaire market?
Lyall Street, Belgravia, SW1
With a steam room, roof terrace and even its own lift, it’s little wonder that this five-bedroom townhouse has attracted the stars over the years.
Once the seat of casino tycoon and zoo owner John Aspinall and later the childhood home of supermodel Cara Delevingne, it was listed for sale last year for £23.5million. In March, the billionaire vendor cut the price of the property to £21million – and it’s still on the market four months later with Beauchamp Estates.
Vicarage Gardens, Kensington, W8
This five-bedroom, five-bathroom terraced property was first on the market in September 2024 for £6.5million. It was reduced to £5million a month later – and now has an asking price of £4.25million with Druce agents. A drop of £2.25million from the original price.
Earls Terrace, Kensington, W8
This Grade II-listed home with six bedrooms and six bathrooms comes with a gym, a double garage and access to communal gardens. Any future buyers can certainly feel safe thanks to the area’s day porterage and security. On the market with Savills originally for £9.5million, its price has now been slashed to £8.5million.
St John’s Wood, NW8
Sitting on sought-after Avenue Road, this ten-bedroom property has an indoor swimming pool, gym and expansive gardens. With its marble hall, many of the house’s art deco interiors were designed by the Earl of Snowdon, David Linley.
It was on the market for nearly £60million but has been reduced to £49.95million with Sotheby’s International Realty.
Ovington Square, Knightsbridge, SW3
This stucco-fronted Grade II-listed house set over six floors has five bedrooms, five bathrooms and four reception rooms, plus a roof terrace. It was priced at £12,950,000 but is now on the market with Knight Frank for £9,950,000 – a staggering drop of £3million.
Montpelier Square, Knightsbridge, SW7
Five bedrooms, five bathrooms, three reception rooms, a gym and sauna in the heart of London. This five-storey townhouse was on the market for £12million and now has a guide price with Knight Frank of £9.95million.
Lower Belgrave Street, Belgravia, SW1
This Georgian Grade II-listed townhouse in Belgravia was on the market for £3.95million and is now reduced to £3.5million via Strutt & Parker. It’s spread out over five floors, featuring four bedrooms, three reception room and floor-to-ceiling windows.
