"Despite the renewed noise around further taxation on higher value homes, prime London demand strengthened as we moved through the final quarter of the year, with buyers clearly prepared to act on the right property at the right price"
- Marc von Grundherr - Benham and Reeves
Buyer demand across London's prime property market rose 1.2% during Q4 2025, according to the latest Prime London Demand Index from lettings and estate agent Benham and Reeves.
Sharp increases in Chiswick, Regent's Park and Maida Vale drove the growth despite ongoing speculation about mansion tax implementation.
The index monitors market activity for properties priced between £2m and £10m, plus the super prime sector above £10m. Demand is measured by the proportion of listed homes that have sold subject to contract.
During Q4 2025, demand for prime London properties reached 13.2%, up 1.2% from Q3 but down 1.3% compared to Q4 2024.
Chiswick recorded the highest demand, with 43.3% of homes listed between £2m and £10m securing buyers. Islington followed with 42.4%, then Putney at 42.2%, Wandsworth at 39.6% and Barnes at 36.6%.
Chiswick also led quarterly momentum, with prime buyer demand jumping 11.4%. Regent's Park saw an 11% increase, while Islington rose 6.6%, Wandsworth climbed 4.2%, Fitzrovia gained 3.8%, Richmond added 3.3%, and Maida Vale increased 3.1%.
Battersea experienced the sharpest quarterly decline at 7.6%, followed by Clapham at 5.3% and Canary Wharf at 4.2%. Notting Hill dropped 3.8%, and Holland Park fell 3.5%.
London's super prime market saw demand reach 3.3% during Q4 2025, down marginally from both the previous quarter (0.7%) and the same period last year (0.9%).
Highgate dominated the super prime sector, with 16.7% of homes priced at £10m or above securing buyers. Marylebone recorded 8.7%, Regent's Park reached 8.3%, Hampstead hit 6.3%, and Kensington achieved 4.8%.
Marylebone led quarterly growth in super prime buyer activity with an 8.7% increase. Regent's Park matched this momentum at 8.3%, while Notting Hill added 4.2%, Highgate gained 1.3%, and Knightsbridge rose 1%.
"Despite the renewed noise around further taxation on higher value homes, prime London demand strengthened as we moved through the final quarter of the year, with buyers clearly prepared to act on the right property at the right price," said Marc von Grundherr, director of Benham and Reeves.
"The strongest performance continued to come from lifestyle-led neighbourhoods, particularly across South West London, where buyers can secure more space without compromising on connectivity, schooling or amenities, and this is helping to keep activity moving even while headline policy risk remains."
The possibility of a mansion tax may accelerate rather than delay buyer decisions, von Grundherr explained. "While a Mansion Tax may still be some way off in practical terms, the likelihood is that it will encourage some buyers to advance their plans rather than delay them. However, whilst London's prime market has always been highly responsive to sentiment, it is also remarkably resilient, and our latest research suggests interest is holding firm as we start a new year."
