"For decades, the prime market has defied gravity, consistently outpacing every other segment. Our data shows that 2022 was likely the peak of that 30-year cycle, with realignment happening ever since"
- Nick Leeming - Jackson-Stops
To buy one of the top 1% of homes outside London, buyers now need 25% less than three years ago, with the threshold falling from £1.67m in 2022 to £1.25m in 2025. This marks the first sustained decline in nearly three decades, reflecting subdued activity in prime homes relative to the wider market.
New analysis by national estate agency Jackson-Stops shows the UK’s prime residential market has entered a significant correction for the first time since the 1990s. Since 1995, the price threshold separating the top 1% of residential transactions had risen considerably faster than the wider market in England & Wales, peaking in 2022.
Today, however, the top 1% of homes outside London cost 25% less than three years ago, moving from £1.67m to £1.25m.
This decline reflects a combination of reduced transaction volumes at the highest price levels and a softening of prices, marking a rare period in which the prime market segment has underperformed.
With the Autumn Budget approaching, industry experts have warned that additional taxation at the upper end, including mansion-tax-style reforms, could accelerate an ongoing price correction.
The research examined house prices at the 99th, 90th, 50th, and 10th percentiles from 1995 to 2025. Key findings include:
The threshold price outside London for the top 1% of sales rose from £245,000 in 1995 to £1.67m in 2022, driven by decades of accessible credit and growing wealth among high-equity buyers.
Since 2022, the top 1% threshold has fallen 25%, reaching £1.25m in 2025.
Prices and activity for lower-value homes have edged upward, while mid-market prices have remained steady. This has led to a rare compression between the median home and the top of the market, not seen in nearly 30 years.
Nick Leeming, chairman of Jackson-Stops, said, “For decades, the prime market has defied gravity, consistently outpacing every other segment. Our data shows that 2022 was likely the peak of that 30-year cycle, with realignment happening ever since. It is likely this is as much about subdued activity due to the high tax on moving at prime levels, as it is about individual house prices.”
He added, “This existing downward pressure at the top end needs to be considered against wider housing market stability. Many prospective sellers, particularly those with mortgages, will be asset-rich and cash-poor."
"Understanding the limits of raising revenue from perceived wealth rather than income, against decades of unprecedented house price inflation and vast regional disparities, is absolutely critical. Any cliff-edge reforms could put additional roadblocks in the way for movers and risk capital flight, consequently slowing down economic activity.”
