Analysis of second hand and new build sales by Savills reveals 68 £5 million plus transactions were recorded in Q1 2026, 35% fewer than the 104 sales seen in Q1 2025 and 33% lower than Q1 2024.

However, the number of sales remains above the pre-pandemic average, according to Savills.

In value terms, a total of £645 million was spent on £5 million-plus homes in Q1 2026, marking a 42% decline on the £1.12 billion recorded in the same period last year.

Savills director of research Frances McDonald said: “The start of 2026 showed promising signs for the UK’s prime property market.

“On a monthly basis, January proved relatively resilient with London £5m+ sales just 7% below the previous year as buyers returned to the market following a ‘better than feared’ Budget result.

“However, renewed caution has swept back into the super-prime London market following the start of the conflict in Iran. This segment of the market is most sensitive to periods of economic and geopolitical uncertainty, and, as a result, transactional activity fell more steeply across the remainder of the quarter.

“Looking ahead, there is the potential for some safe haven flows of wealth into the rarefied market, though the underlying tax environment remains a barrier to achieving higher prices. There is also some evidence of more demand instead being pushed into the super prime rental markets, as people initially look for a base in London without the commitment of buying.”

There has been greater geographic diversification to London’s £5 million-plus portfolio over the past couple of years, Savills said.

But sales at the top end of the market over the past three months were more concentrated in London’s most traditional prime central London postcodes.

Belgravia accounted for 15% of all £5 million-plus sales in Q1 – the highest share concentrated in a single London neighbourhood in the past five years.

Kensington (12%) and Mayfair (10%) saw the second and third highest number of sales beyond this price point.

Savills head of prime central London Richard Gutteridge said: “While sales have generally slowed, a flurry of big-ticket sales over the past couple of weeks underlines that there is still very much life at the top end of the market.

“These buyers are far more focused than 12 months ago – and are highly informed and acutely aware of the value on offer. With ongoing stock constraints in the golden postcodes, there is a real risk of missing out on the best turnkey properties if they don’t commit when quality comes to market.

“These transactions reinforce London’s enduring appeal for savvy, long‑sighted buyers, even against a backdrop of wider market turbulence. While the buyer pool is smaller, it is highly motivated, with many having waited on the sidelines over the past year and now looking to take advantage of the value on offer.”