A notable shift is taking place in London’s residential property market. Recent data shows houses finding buyers more quickly than apartments, with the gap in performance becoming increasingly pronounced over the past year. Understanding the factors behind this change is essential for anyone considering a purchase in the capital.
According to Hamptons, London houses took a median 63 days to sell in 2025, compared with 85 days for apartments. The disparity is particularly evident at higher price points: some 13% of apartments priced at £1 million or above sold for less than their original purchase price last year, against just 2% of houses in the same bracket.
The tax landscape
Several factors have contributed to this divergence. The abolition of the non-dom tax regime in April 2025 has had a measurable impact on international demand for central London apartments, which had traditionally appealed to overseas buyers seeking a London base.
“Many international clients considering purchasing apartments in central London and spending the summer here changed their minds, instead staying in hotels.” — Rhianne McIlroy, Middleton Advisors
Stamp duty has also influenced buying behaviour. With rates reaching 19% for international second-home purchasers at higher price points, and significant charges even for domestic primary residence buyers, the cost of moving through a succession of apartments has become prohibitive. Many buyers are now choosing to wait until they can purchase a house directly, rather than paying substantial transaction taxes multiple times.
A tale of two markets
Houses in the ‘London doughnut’ – the ring of sought-after neighbourhoods surrounding Prime Central London, including Islington, Fulham and Battersea – have seen prices rise 31% over five years. Apartment values in the same areas have increased by just 8% over the same period.
For house-hunters, this reflects sustained demand and suggests continued resilience. The desire for outdoor space, which became more pronounced during the pandemic, has proved lasting rather than temporary.
For those seeking apartments – whether as a pied-à-terre or an investment – current conditions present a different proposition. With less competition from international buyers and vendors adjusting their expectations, well-advised purchasers are finding room to negotiate.
The value of considered advice
Markets in transition require careful navigation. Whether pursuing a family house with long-term growth potential or identifying an apartment at a sensible price, the importance of professional guidance – and access to off-market opportunities – has rarely been greater.
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