Key Considerations for Buying in 2026
If you’re thinking about making a move in the prime property market this year, the conditions are worth understanding. After a period of adjustment—particularly in central London—the landscape has shifted in favour of buyers who are prepared, patient and clear about what they want. Insights from our London Buying team
Where the Market Sits
In central London, a lot was put on hold in the run-up to the 2025 Autumn Budget. Activity has picked up since, though we’re not expecting a significant jump in pricing. There remains a gap between what vendors hope to achieve and where the market actually sits, particularly on ‘prime’ properties over £5 million, and we’ve been able to negotiate effectively on pricing as a result.
The picture in London’s suburbs is slightly different. Areas like Wimbledon, Fulham, Islington and London Fields have continued to perform throughout last year, powered by local residents upsizing and downsizing and families moving closer to good schools. This is typically the £1–3 million price bracket, where major budget changes have less effect, and buyers are much more needs-driven.
International Interest
London continues to draw international buyers, while the changes to the non-dom regime have meant that many have chosen to take up residency in more tax-friendly nations, people still want a base in London. We’re seeing notable activity from Americans—many motivated by political reasons at home—and Turkish buyers have also become more active. Competition for best-in-class properties remains, and being well-prepared matters.
Why Off-Market Matters
Selling agents will often use an off-market approach initially to test a higher price, reaching out to their databases to gauge interest before deciding how to proceed. Compromised properties frequently come to market at a lower price after a few weeks. The truly special homes, however, almost always sell before they reach any online portal.
For buyers, this means that what’s publicly available is only part of the picture.
The New Mansion Tax
One thing to be aware of: from April 2028, properties valued above £2 million will attract an annual surcharge, ranging from £2,500 to £7,500 depending on value. Assessments will be based on 2026 valuations. The amounts are relatively modest, but we expect some adjustment in pricing for properties near the threshold.
Looking Ahead
Early signs suggest 2026 could prove to be a busier year, as many buyers who held back due to budget uncertainty are now ready to move. There are already reports of more supply coming to the portals, and properties that sat on the market for some time last year are now going under offer.
Whilst this is a more positive outlook, we don’t expect it to translate into price increases just yet. Buyers are certainly more confident—but how busy the market becomes remains to be seen.
If you’re interested in purchasing London property this year, click here to speak to our team.
