London prime property listings decline 3.4% in Q3

The number of prime properties available for sale in London fell by 3.4% during the third quarter ending September 2025. Data from Benham and Reeves indicates that total stock in the capital stood at 3,778 properties.

The decline is attributed in part to market uncertainty surrounding potential changes to the Mansion Tax, also known as the High-Value Council Tax Surcharge. Chancellor John Healey had reportedly considered lowering the tax threshold from £2 million to £1.5 million. Although the proposal was ultimately dropped earlier this month, speculation may have influenced seller behavior during the quarter.

Market trends varied significantly by location. Fitzrovia saw the sharpest contraction at 16.5%, followed by Marylebone (13.4%), Mayfair (13.3%), Pimlico (12.8%), and Victoria (9.9%). Conversely, areas such as Kensington, Notting Hill, and Chelsea experienced increases in available listings.

Separately, industry experts report a slowdown in transactions due to “buyer paralysis.” While viewings remain active, buyers are hesitating due to concerns over economic decline, potential house price falls, and Stamp Duty costs. Meanwhile, some sellers are resisting price reductions, struggling to align asking prices with current market valuations.