Recent analysis by estate agent Hamptons has found London sellers are more likely than anyone else to sell their home for less than they bought it for.

Analysis of Land Registry figures shows that 14.8% of London sellers in 2025 sold for less than they originally paid, overtaking the North East, which held the top spot in 2024.

Rathbones said this raised concerns for those who have used rising house prices as a main plank of their financial planning.

Rathbones Private Office head of advice Simon Bashorun said: “London property is no longer the low risk cornerstone of wealth planning that many high net worth families assume it to be and those with property as part of their portfolio need to give its future consideration.

“The market’s slowdown exposes three vulnerabilities for those leaning too heavily on real estate: concentration risk, illiquidity, and a rising policy and tax burden.

“While property can still play a role, using prime London homes or buy-to-lets as the backbone of retirement or estate plans is increasingly precarious.

The tax environment has shifted materially: higher stamp duty surcharges, the new Mansion Tax, and growing talk of high value council tax supplements all erode returns. And unlike diversified investment portfolios, residential property typically lacks tax efficient reliefs, most notably Business Relief, which means property flows straight into the inheritance tax calculation.”