Beauchamp Estates’ October 2026 survey says London’s luxury apartment market has cooled sharply, with sales of homes above £5 million falling by 80 per cent since 2023 and new-build sales down 87 per cent.
Across Prime Central London, the market has shrunk from £3 billion in annual deals in 2022 to £692.9 million in 2026. The report blames planning restraints, reduced funding, high construction costs, rising taxation, the Non-Dom exodus, and a shift in buyer preference toward houses rather than flats.
Between 2022 and Q3 2026, 1,263 luxury apartments were sold for a combined £12.5 billion. New-builds still formed the majority, but their share weakened as supply dried up. Average pricing has stayed broadly flat at just over £3,000 per sq.ft., showing that lower supply has not lifted values because demand has also softened.
The most expensive address for flats is Grosvenor Square, while Kensington is the most popular district for luxury apartment sales. Kensington remains attractive because it offers comparatively better value, with prices around £2,549 per sq.ft., below Mayfair, Belgravia and Knightsbridge. Chelsea also stands out as a desirable but price-competitive market, with average pricing around £2,470 per sq.ft. and strong appeal in the second-hand segment.
Top-tier branded residences and best-in-class developments continue to outperform, achieving £5,000 to £7,500 per sq.ft. Projects such as One Hyde Park, The OWO, 20 Grosvenor Square and The Whiteley have helped reshape local markets, proving that new luxury developments can lift an area’s profile and stimulate wider regeneration.
The report also highlights a shift in buyer mix: new-build sales are driven mainly by overseas buyers from America, the Middle East and India/Far East, while second-hand flats attract more UK and Western European purchasers. Kensington and Chelsea benefit from this dynamic because they combine prestige, relative value, and strong resale demand.
Overall, Beauchamp Estates argues that London needs more viable private-sector apartment development to restore supply, support regeneration and recover lost tax revenue.
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