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Behind locked doors: the secret lives of London’s mega mansions

They may look empty when the rich owners are away, but the staff are inside at work and play.

By Emma Magnus

Property billionaire Nick Candy made headlines when he complained about the £161,000-a-year service charge at his ultra-luxurious One Hyde Park apartment.

“I’m there 20 days a year, and I pay the service charge like the guy who uses the pool every day,” he said. “I no longer live in that apartment, I live in Chelsea.”

Candy listed the property for £175 million in 2021, and it remains on the market with Sotheby’s International Realty.

Like Candy’s apartment, thousands of luxury homes across the capital lie empty. London has the highest percentage of unoccupied homes anywhere in the country. And behind their closed doors, a team of people work around the clock to keep their homes in pristine condition.

“Staff count down the days until their principals leave,” says an employee for one high-net-worth west London family.

“They go from being the dogsbody to being the client, with some jumping at the chance to enjoy all the high-end perks like pools, steam rooms and gyms.

“Chefs end up trying out new five or six-course menu ideas on the staff and we still use drivers to run errands. Pets are often packed off to luxury countryside retreats.”

It’s not all fun and games, however, as staff are expected to work as if their employers were home. Silver is polished and repolished to dazzling effect, wardrobes are organised and any property damage is sorted while owners are away.

“No one would know our employers aren’t home,” adds the anonymous staff member, who counts an impressive (NDA-protected) list of London’s gliteratti as former employers. “There are so many people coming and going.”

At this level chefs and nannies, who tend to work one week on, one week off, can earn £70,000-plus a year. “So there’s no such thing as working from our own homes. If you’re not physically there — unpacking, repacking for the next trip, organising — then you’re not staff for much longer.”

Ultra-rich property owners without a fleet of full-time staff tend to hire property managers to ensure they come back to homes as they left them.

“People usually feel quite anxious about leaving their home empty for long periods of time, not only because it’s more vulnerable to burglary, but they’re conscious that if something goes wrong inside the house it won’t be discovered until they get back,” says Jo Eccles, managing director of buying agency and property management company Eccord.

“Our clients value the peace of mind that comes with knowing someone has been in, walked through the house, checked the heating and hot water and tested the alarm.”

Simmi Sangha, the company’s private homes manager, says most owners are based internationally, but will “dip in and out of London” two or three times a year.

For most luxury homeowners, having someone visit the property regularly is an insurance requirement if it is unoccupied for more than 60 days.

This 30 to 60-minute process is usually weekly or fortnightly — or once, for Sangha’s client’s £25 million Notting Hill house, every 72 hours. No tap, shower or light switch is left unturned.

Sangha is responsible for contracting the unglamorous maintenance tasks for homeowners: maintaining the AC systems, servicing the boilers, checking the gas. “I need to make sure that I’m two steps ahead.”

The idea, theoretically, is that nothing will ever go wrong — or at least, clients won’t be there to see it. As Camilla Dell, founder of buying agency and property management service Black Brick, puts it: “Most people’s approach to home ownership is to wait until something goes wrong, whether that’s a light bulb going, or something more major, like the heating not working, or the boiler breaking down. Our service is all about avoiding that.”

‘We do very weird things’

But while such work is meticulously planned, property managers will also find themselves tasked with more varied requests.

If clients need their plants watered, a video walk-through of their property, new linens purchased or to check whether they left their Chanel jacket in their wardrobe, Sangha will oblige.

When her client was landed an erroneous £11,000 bill from Thames Water, she spent six months fighting to have it corrected. And when another client had all their new furniture delivered to their Chelsea house, Sangha was available to receive, unpack and stage the deliveries.

“The work is so different for each client,” says Sangha. “We do very weird and wonderful bespoke things.”

Yasmin Ulhaq, founder of Glenfield Property Management, is no stranger to this. Ulhaq offers “concierge-style management” which she says “mirrors the experience of a five-star hotel, tailored to each client’s lifestyle”.

Her “platinum” package makes her available 24/7 to clients, 365 days a year. As well as maintenance and insurance checks, she will open, sort and forward mail, ensure that her client’s Bentley is tested in their absence and make specialised payments on some clients’ behalf.

In the past, this has included artwork and the purchase of a Birkin bag as part of a client’s Christmas shopping. “Sometimes, if I’ve got a good enough relationship with those clients, I’ll pay out of my own account and then I’ll be reimbursed.”

Alice Lynch, founder of Lynch Property Services, is responsible for cleaning these empty houses. And if owners aren’t happy with how their homes look, it’s Lynch who will get the call.

“We’ve had people’s children stay in the property and the parents haven’t known. They’ve then said we haven’t cleaned it properly,” she says. “It’s like detective work: you’re trying to piece things together.”

Lynch is often the first person to notice when something has gone wrong: a leak from the radiator, a damp patch — or once, a pigeon in the house. “I don’t know how it got in there, but the carnage from the pigeon was awful,” Lynch says.

“The other problem is pests — mice and rodents. They can get in anywhere, even in the best maintained properties.”

She has found mice nests in sofas and, more troublingly, in bed headboards. She has seen moths eat through homeowners’ woollen clothes, and once, a pair of boots.

It is her job to inform the client or property manager. “Sometimes it feels like we’re the bearer of bad news,” she says.

One of the biggest — and highest pressure — parts of the whole operation is preparing for the owners to return.

There should be no water marks on the sink, no smears on the worktop, no marks on the glass. And crucially, the property should smell clean.

“Sometimes, if it doesn’t smell fresh, people will say that it doesn’t feel clean,” says Lynch. “

Ready and waiting

Ulhaq, likewise, will go to great lengths to prepare her clients’ properties for their impending return. This includes ordering flowers, perfecting the temperature, turning on the lights, preparing the fireplaces, heating the swimming pool and adjusting the clothes in their wardrobes.

She will stock the cupboards with her clients’ favourite products, whether that’s za’atar, protein drinks, okra soaked in water or specific brands of fabric cleaner.

“Even their toothbrush is ready for them. They just want to drop off their suitcase and have somebody — usually the housekeeper — put it in the cupboard,” she says.

“It’s a seamless transition back into their London home. We want it to feel as effortlessly luxurious as in their primary residence, no matter how long or short they’re staying.”

Often, though, Ulhaq doesn’t get much more than a few days’ notice. “It can be last minute, but that’s why the house has got to be ready,” she says.

And so, year-round, these empty properties will remain immaculately kept, beautifully maintained, stocked and prepared, always ready for their owners to return.

Why London’s luxury property market has dived — and Dubai’s soars

The capital is no longer hot property — prime prices have fallen, meaning you can get more for your money. And experts say you can’t blame it all on Labour

By Emanuele Midolo

Dear American multimillionaires looking to buy a home in the UK, I have good news for you: if you have $1 million to splash, you can now get more bang for your buck in London.

The annual Wealth Report published today by the estate agency Knight Frank shows $1 million (about £800,000) now buys you 34 sq m (365 sq ft) in London, up from 23 sq m (248 sq ft) a decade ago — a 43 per cent increase. This makes the British capital better value than it has been for years.

To put it into context, a 200 sq m (2,150 sq ft) penthouse in, say, Marylebone, would now cost you just short of $5.9 million, compared with $8.7 million it would have cost you ten years ago.

This is because prices have constantly gone down over the past couple of years, while tax rises have dissuaded buyers from moving here, leading to one of the most stagnant periods for the London luxury property market in decades.

Plummeting prices and a favourable currency fluctuation mean that, although bricks and mortar in the capital is still among the most expensive in the world, it is significantly more affordable than it was a decade ago.

London has seen the biggest shift since 2014, says Liam Bailey, the global head of research at Knight Frank. “The three markets that stand out where actually you’re getting more for your money now ten years on are London; Monaco (5 per cent more space), where you’re getting 19 sq m for your million dollars rather than 18 sq m; and New York (2 per cent more space), with 34 sq m rather than 33 sq m.”

How much space $1 million gets you in London and elsewhere

Searching for a luxury home in London? You can get even more for your money in other places.

mericans already made up a quarter of the buyers of the capital’s most expensive properties last year, according to the ultra-prime agency Beauchamp Estates, based on data from the property portal LonRes.

“That’s great for London,” says Camilla Dell, a buying agent and founder of the buying agency BlackBrick, of the latest figures. Some 25 per cent of Dell’s clients are Americans. “We’re pretty busy, despite the fact that the super-prime end of the market is coming down — and that’s just a fact.”

“I’ve just signed on a £20 million deal for an American client. We saved almost 25 per cent from the original asking price. Because there are very few transactions at this end of the market there’s more supply, buyers have more choice, which is fantastic. I’m inundated with options. I’ve got a dozen options for a single client in Mayfair. That’s unheard of.”

Dell says she is buying a property for an American in Chelsea near Sloane Square for close to £5 million. “They want to be close to the action,” she says. And it’s not just Americans: many other nationalities whose currencies are pegged to the dollar, such as in the Middle East or Asia, would benefit from this too.

The London prime property market could do with more millionaires. The Wealth Report calculated that the number of UK residents with assets of $10 million of more has gone up ever so slightly last year, from 55,152 in 2023 to 55,667 in 2024 — a 0.9 per cent rise. But the UK lags well behind regions such as North America, where the number of millionaires over the same period went up by 5.2 per cent, Asia (5 per cent) and even continental Europe (1.4 per cent). Recent figures claim that 11,000 millionaires left the UK last year, 157 per cent more than the previous year.

The reason for that, Bailey from Knight Frank says, is tax. And it’s not even entirely Labour’s fault, he argues.

“It actually wasn’t the last budget, it was Jeremy Hunt’s [the former Conservative chancellor]. As soon as Hunt talked about non-dom abolition and serious reform, that really slowed the market down.”

This is echoed by Paul Finch, a director and head of new homes at Beauchamp Estates, who says: “Over the past six months we have seen a dramatic shake-up in the prime central London property market which has been disrupted by a combination of stamp duty rises, the abolition of the non-dom regime and fears over capital gains tax rises and inheritance tax changes.”

Stamp duty for overseas buyers purchasing a second home in London can be up to 19 per cent. “It was 1 per cent back in 1979,” he says. “This has resulted in a significant outflow of wealthy people from the London market. Mostly these are domestic UK residents and also overseas residents with UK passports who are selling up in London and relocating to Dubai, Switzerland, Monaco, Miami and the French Riviera.”

If the traditional markets of London, Monaco and New York have become more affordable, “emerging” cities like the ones mentioned by Finch have seen the opposite trend.

Where’s up and down in the world’s luxury housing market?

“For most of these markets there’s been a massive price uplift and therefore the amount of space you can get for your million dollars has shrunk quite considerably,” Bailey says.

The two main factors remain the same — house prices and taxes — but reversed. Dubai, in particular, has seen an eye-opening 147 per cent rise in property prices over the past five years.

Although it has slipped from last year’s second place to third, the emirate has seen a 16.9 per cent growth last year, a percentage point more than the previous year.

The other cities at the top of Knight Frank’s list are Seoul (18.4 per cent rise last year) and Manila (17.9 per cent), followed by Dubai, then Riyadh (16 per cent) and Tokyo (12.1 per cent).

Benign taxation, the Wealth Report shows, is also acting as “a pull factor” for some who have chosen to look elsewhere: again Dubai, but also Switzerland and Italy.

Daniel Daggers, the founder of the property advisory DDRE Global, who is based in London but also buys and sells homes for the super rich in Dubai, says records will continue to be broken there “but at a less ferocious pace”.

The next 12 months will be crucial, Daggers believes. “People are still enjoying it but there isn’t the same growth as before,” he says. “That’s what we’re telling our clients, that we need to look at the sustainability of these markets. There is a sense that the champagne is still flowing but the music is slowing.”

Why do some properties get snapped up while others struggle to sell?

By Hugh Graham

Is it a buyers’ market or a sellers’ market? It’s the perennial question in property. In the case of London right now, the answer is both. Sometimes those markets are just streets apart — sometimes they are different houses on the same street.

While good quality family homes below £1.5 million are being snapped up (with many going to sealed bids), more expensive properties can languish on the market enduring discounts in the hope of finding a buyer. Doer-uppers are no longer in favour while turnkey properties near good state schools are in high demand.

Take the case of Yasha Estraikh and Maya Magal. The couple live in a four-bedroom terraced house in Kensal Rise, a family-friendly neighbourhood in northwest London. They have children aged seven, five and one and would like to upsize. They put their Edwardian house on the market for £1,699,950 in November. “We thought it was a terrible time to list, before Christmas, but we had found a house we really liked, and thought, we better get ours on quickly,” Estraikh, 40, a brand investor, says. “We were actually amazed by the reaction.”

They had 12 viewings in 16 days and two offers — one over the asking price at £1.71 million. In hindsight, Estraikh is not surprised. “Every month we get handwritten letters through the door saying, we’re a family, we want to move to the area, are you considering selling?”

The house the couple wanted to buy fell through. But, after accepting the offer for £1.71 million, they were able to find a bigger house with a larger garden in the same neighbourhood, but for a lower price: £1.437 million, reduced from £1.8 million, the initial listing price over a year ago. The reason? It was a fixer-upper.

It’s the houses that are modernised and sold in turnkey condition that are selling well, according to their estate agent Stewart Boyd, who runs Winkworth in Kensal Rise and Queens Park. “In the last five years, since Brexit and Covid, there has been a complete 180 from people who want doer-uppers and people who want a plug-and-play house, just because of the cost of labour and building works.”

Estraikh and Magal’s story is playing out all over the London suburbs. The property market may be in the doldrums in some parts of the country, with reports of price falls and long sales times in the home counties, and a stagnant super-prime London market. But London’s family-house market, between £1 million and £2 million, is hot in many postcodes, according to The Advisory, a property advice website. Its PropCast data determines heat ratings by counting the number of properties on the market in a postcode and calculating the percentage of these that are under offer or sold subject to contract: 0-25 per cent is very cold, 26-34 per cent is cold, 35-49 per cent is hot and anything above 50 is very hot.

PropCast assessed 35 London postcodes and found that 26 of these were hot or very hot. The hottest market between £1 million and £2 million was SE21, which covers Dulwich and Tulse Hill, where 71 per cent of the properties were under offer, followed by N8 (Crouch End and Harringay, 69 per cent), SE22 (East Dulwich, 60 per cent), SE15 (Peckham and Nunhead, 57 per cent) and E11 (Wanstead, 56 per cent). Homes priced between £1 million and £2 million sold 14 per cent more quickly than at all other price points across the capital in 2024, according to the estate agency Savills using data from the consultancy TwentyCi.

Geoff Wilford, the owner of Wilfords estate agency in Battersea, south London, recently sold his own house in a hot area (Wandsworth, SW17), where 48 per cent of the stock is under offer. In 2020 he and his wife spent £400,000 renovating and extending their four-bedroom Victorian terraced house in Bellevue Village, which is in a catchment area for good state schools. They paid £1.23 million for it in 2017. In October they put the house on the market for £2 million. “We had about six viewings, and sold in November for £2.25 million. The market is absolutely flying, as long as houses are priced sensibly.”

Tales of sealed bids are common, but it’s not a frenzied market. In 2014 you might have seen ten parties bidding — now it’s more like two or three, according to Amy Reynolds, the head of sales at Antony Roberts estate agency in Richmond, southwest London. Properties typically get the asking price, or a bit above or below. Savills has forecast a 3 per cent rise in prices for the mainstream London market in 2025, but no price rises for outer prime areas (£1.85 million and above in areas like Chiswick, Wandsworth, Fulham and Islington) and a 4 per cent fall for prime central, such as Chelsea and Belgravia.

“In the outer prime London family neighbourhoods like Fulham and Clapham we’re definitely seeing increased competition, sealed bids, not enough supply and more buyers than there is available stock,” says Camilla Dell, the founder of the buying agency Black Brick. “Part of the reason is people are moving less. In the days when stamp duty was lower, people would take baby steps up the housing ladder. Now they save and live with their parents for longer, and when they are ready to buy, they start with a family house. And that has caused increased competition.”

Supply is still much lower than in previous hot markets, agrees David Fell from the estate agency Hamptons. In January 2016, for instance, there were 386 sales of £1 million to £2 million houses in Greater London; Hamptons expects between half and three quarters of this for January 2025, although the property website Rightmove says the number of sales agreed in London is 17 per cent higher than a year ago.

Not so hot for others

Not everything is being snapped up, though. The PropCast data shows that in the £2 million to £5 million bracket, 26 of the 35 postcodes are cold or very cold. There is a smaller pool of buyers at higher price points, and some of those postcodes have few properties above £2 million.

At this level there are some significant price drops in family-friendly areas. A seven-bedroom Victorian house in Crystal Palace, southeast London, went on in May with Hamptons for £2.35 million and last week reduced its price to £2 million, a 15 per cent drop. An eight-bedroom Victorian fixer-upper in Balham, south London, went on in August for £2.95 million with the agency Knight Frank and was reduced to £2.75 million in December.

Price drops

Stamp duty is a cooling factor. “Buyers are unsurprisingly hyper-aware of the jump from 10 per cent to 12 per cent once the purchase is above £1.5 million,” says George Jackson-Stops, the head of office at the estate agency Strutt & Parker in Fulham.

The stigma against fixer-uppers is another factor in the upper price bracket. “The biggest change I’ve noticed in 25 years in the business is that when I started everyone wanted an unmodernised property — now nobody wants them,” Reynolds says. It’s not just because of build costs, either; a shortage of rentals to stay in while you renovate also puts people off.

Sellers will drop their price, too, to get a deal over the line if their onward purchase is jeopardised by the prospect of a chain falling apart.

The biggest problem, however, is overpricing, according to the buying agent Henry Sherwood, who estimates that 60 per cent of properties on the market are overvalued. In times of lower supply overvaluations are more common as the estate agent will flatter the homeowner — or go along with their fantasy price — to get the instruction.

Holding out for your asking price

Overvaluations play out in one of three ways, Sherwood says. “One, an unsuspecting buyer pays far too much, usually cash buyers — if there’s a mortgage valuation, lenders are cautious right now and will down-value if there is an element of doubt. Two, the agent gradually reduces the price during the term of the contract, usually 12 weeks. Three, the property doesn’t sell and is removed from the market in 60 per cent of all cases.”

According to data from TwentyCi, only 34 per cent of properties listed for more than £1 million sold in 2024.

One reason vendors are overpricing is the after-effect of the Covid race for space, when there was a spike in demand for houses with gardens in London’s suburbs. Financial anxiety is also high because this year hundreds of thousands of homeowners will come off five-year, low-rate fixed mortgage deals that they took out during the pandemic.

“If you’ve got someone who overpaid by 10 per cent during lockdown and prices have softened since then because of the mini-budget and interest rates, you have vendors that simply won’t accept that they’ve lost money on their property,” Sherwood says. “They want their purchase price back plus their stamp duty. And it’s not going to happen. We have a lot of tough negotiations at the moment.”

Reynolds says if the vendor is aiming to get £1.3 million, they’ll often want to put it on at £1.5 million. But that strategy can backfire, she warns. “We had to take a property off the market before Christmas because it was just pointless. It didn’t matter what feedback we gave, the owner would not drop the price. It came on at £1.35 million, it was worth about £1.15 million. But the people who could afford £1.15 million wouldn’t view it. People think it’s a waste of time, that they’re never going to get it.”

It is usually the most financially stretched sellers who overvalue in desperation, she says. “That’s even worse because then it takes even longer to sell.”

Reynolds says many have admitted to her that they are worried about higher school fees and economic gloom. “There’s recently been a high percentage of valuations that don’t lead to anything. People are saying, ‘I’m not looking to sell, I’m doing this because I’m concerned about my job.’ People are just preparing — what price could I get in case the worst happens? It’s topical in a way that it hasn’t been for a long time.”

London’s prime property market: The show goes on

Despite talk of a cooling market, the curtain is far from closing on London’s high-end property market. Sales of £5 million-plus homes jumped 25% in late 2024¹, proving that serious buyers are still firmly in the market. But beyond these eye-catching deals, something more subtle is unfolding.

“A combination of political uncertainty and the additional stamp duty surcharge for second homes and changes in non-doms taxation announced in the Budget has meant that it has not been plain sailing for prime London buyers and sellers this year,” says Nick Maud, Director of Research at Savills. “But the bounce in activity towards the end of the year is a testament to the resilience of this market, and the strength of appetite from domestic buyers.”

On the ground, however, the market does feel different. “I don’t think I’ve ever seen a market quite like it – there’s no shortage of homes to buy,” says Camilla Dell, Founder of buying agency Black Brick.

Jo Eccles, Founder of buying agents Eccord, agrees: “It’s firmly a buyer’s market. Typically, we’re now able to show clients twice as many properties as usual – a striking shift, especially given their sometimes-exacting requirements and high price points. A significant number of these homes belong to sellers rethinking their future in the UK ahead of the new non-domiciled tax rules.”

Shifting dynamics in central London

But it’s not just tax changes driving sellers to the market. Many who had been holding off for years – due to factors like Brexit, the mini-Budget, interest rates, and the general election – are now increasingly ready to sell, having grown weary of waiting for more appealing market conditions.

“For sellers who price realistically, it’s reassuring to know that there are buyers ready to act,” says Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank. “Equally, the current market presents chances for buyers to find high-quality properties at favourable prices.

“Alongside this, changes to the ‘non-dom’ rules are leading many high-net-worth individuals to reassess their long-term plans. Whether you plan to remain in London, rent your property out, or relocate entirely to somewhere like Switzerland, the French Riviera or the Channel Islands, understanding the financial and legal implications of these choices will be key to making informed decisions.”

Given the market conditions and general uncertainty, it’s no surprise that prices have fallen slightly in recent months – particularly in prime Central London, home to some of the capital’s most prestigious neighbourhoods, such as Mayfair, Knightsbridge and Belgravia, all renowned for their luxury housing and global appeal.

“Prime central London saw a slight softening in prices in the fourth quarter, and we expect a further 4% drop in 2025²,” says Lucian Cook, Director of Residential Research at Savills. “That said, with prices 20% below their 2014 peak, the area still offers strong value. We project a 9.6% increase³ in prices over the next five years as the market finds its footing in a changing fiscal and regulatory landscape.”

Cook adds: “One of the main reasons we don’t expect further significant price drops is the inflation-adjusted discount, which makes the current value even more compelling. Additionally, the relative strength of the dollar and the weakness of sterling continue to support demand. Moreover, few markets offer the same level of appeal and accessibility as London.”

Stuart Bailey, Head of Super Prime Sales in London at Knight Frank, comments: “Value is the key theme across prime markets right now. Whilst volumes are holding up – or even increasing – in both the prime and super-prime sectors, what has come down is the value of the properties we’re selling.

“So, we’re seeing a focus in the prime market (£5 million-£10 million) on the lower end – £5 million-£7 million – rather than the higher £7 million-£10 million range. In the super-prime (£10 million-plus), there’s also a shift towards properties in the lower ranges, between £10 million-£20 million. Buyers in the higher levels of each price bracket are slightly more hesitant, but deals are still happening – it’s just that we’re seeing some buyers there negotiating prices down.”

London: A city like no other

What makes London so remarkable is that few global cities can match its blend of heritage, culture and modern luxury. The city boasts some of the world’s finest museums and theatres, elite private schools, and a dynamic food scene, with 85 Michelin-starred restaurants catering to every palate⁴.

London’s reputation for safety, well-regulated property laws and political stability further enhance its long-lasting appeal. Its global connectivity – via the Eurostar and five major airports – ensures it remains a prime destination for international buyers.

“While there’s talk of people wanting to leave, some who have actually relocated are struggling to settle and are finding they miss all that London has to offer,” says Dell at Black Brick. “The reality is there’s no perfect alternative. And despite challenges like the introduction of VAT [value added tax at 20%] on school fees, the UK’s education system remains one of the best in the world and a key draw for families.”

Another example of London’s enduring appeal, despite a market in flux, is the recent sale of The Holme in Regent’s Park, one of the city’s most prestigious properties – and once described as “possibly the world’s most expensive home”⁵. Situated in the heart of central London, this 29,000-square-foot, multi-million-pound estate is testament to the ongoing demand for the rarest and most luxurious homes. And although the market has softened, properties like The Holme continue to attract buyers who value exclusivity, size and historical significance.

All of these factors – and more – continue to attract buyers, particularly international ones, to London.

“Demand from American buyers especially has been building steadily over the past 12 to 24 months, and they now make up nearly 30% of our clients,” says Eccles at Eccord. “Currency discounts, along with the appeal of the UK lifestyle and education system, remain strong drivers. One of our super-prime American clients told us he had considered his options globally but concluded, ‘There’s only one London’, and is now buying a £20 million house here.”

A two-tier market emerges

Beyond The Holme’s near record-breaking sale⁶, the high-end property market is evolving, with a clear two-tier split emerging in how the market operates. Eccles of Eccord notes that homes under £15 million are becoming more price-sensitive, with buyers increasingly favouring move-in ready homes. “Anything overpriced is seeing little traction,” says Eccles.

Above £15 million, however, and off-market deals are becoming much more common. “There’s often a shroud of secrecy in many of these deals, too,” she adds. “We’re also seeing a growing divide between turnkey properties and those needing work. Buyers at all price points are willing to pay a premium for the convenience of move-in-ready homes.

“Meanwhile, properties requiring renovations – which make up the majority – are highly price sensitive. In the super-prime market (£20 million and above), there’s also an increasing supply of turnkey properties, as sellers leaving the UK are listing beautifully refurbished homes they hadn’t originally intended to sell.”

Black Brick’s Dell agrees, highlighting the growing challenge of accessing all available properties – especially for those relying solely on online searches. “London’s prime property market is flooded with off-market listings, particularly for homes over £5 million,” she says. “With properties circulating through private groups and networks, buyers are often only seeing a fraction of what’s available online – around 50%, and that can rise to 80% for properties over £10 million. Navigating this complex, invisible market is increasingly driving buyers to work with buying agents.”

Demand for family homes remains strong

Just below the highest property brackets – in outer prime areas like Fulham, Wandsworth, Hampstead, Highgate and Dulwich – demand for family homes remains strong, driven largely by domestic needs-based buyers. Well-priced properties are selling quickly, although buyers still have the upper hand here too.

“These outer-prime London markets have held their value, even showing modest growth⁷,” notes Cook at Savills. “Beyond the capital, too, prime country markets are stabilising, with annual price falls slowing. However, coastal second-home hotspots remain more price-sensitive, reflecting broader economic pressures.”

Moroukian at Barclays adds: “We’re seeing ongoing demand in the domestic family home market. Although the market is competitive, these areas remain resilient, with families looking for stable, long-term homes – which is driving ongoing activity.”

Rental market shifts

Rental trends are also shifting. While some landlords are exiting the market due to lower returns, there are more ‘accidental landlords’ emerging, with those unable to secure their asking prices choosing to rent out their properties instead.

Then there is the new Foreign Income and Gains (FIG) regime, effective from April 2025, which replaces the old ‘non-dom’ regime and allows non-domiciled individuals to reside in the UK for up to four years without paying UK tax on foreign income and gains.

“We expect to see more people entering this regime and opting to rent rather than buy, given the time frames – even now, we’re seeing rental activity on the rise,” says Dell at Black Brick.

For those renting high-value properties, understanding the tenancy agreement and its implications is critical. “If you move into a rental property in England with a yearly rent of £100,000 or more, you will be entering into what is known as a common law tenancy,” explains Camilla Tunnicliffe, Knowledge Lawyer at Farrer & Co.

“Unlike tenants of an assured tenancy [which applies to annual rents under £100,000], common law tenants will not benefit from a range of statutory rights and protections intended to safeguard those living in rented accommodation, including those due to be introduced under the Renters’ Rights Bill. Given this lack of statutory protection and the high value of the property, we would always recommend seeking legal advice before entering into a common law tenancy.”

London: A prime destination for property buyers

Yet, despite some of the challenges mentioned above, London’s appeal remains strong. As a global powerhouse, it continues to offer long-term value and exclusivity that few cities can match.

“London will always be a prime destination for property buyers,” says Moroukian at Barclays. “Its ability to weather market shifts ensures it remains a prime location for property investors.”

Bank of England expected to cut base rate today to boost economy

Agents have welcomed the widely-expected 0.25% cut by the bank’s Monetary Policy Committee as inflation fades.

The Bank of England (BoE) is expected to cut its base rate by 0.25% today as its Monetary Policy Committee (main image) shifts focus from cutting inflation to stimulating the flagging economy.

Economists quoted yesterday by both The Times and Sky News have said they expect the cut, a move that has been on the cards since inflation dropped from 2.6% to 2.5%.

This may sound like a small reduction, but inflation remains much lower than the 10% inflation seen during 2022/23, albeit above the BoE’s official 2% target.

The bank’s base rate has been at 4.75% since November last year, although mortgage rates have been softening for several months now in anticipation of further rate cuts and this, much to many estate agents’ relief, has helped boost demand.

Paul Hardy, MD of LSL Estate Agency Franchising says that, assuming the expected rate cut does take place that: “Although widely anticipated, this is good news for home buyers and anyone remortgaging in 2025.

“Every saving on a mortgage repayment helps confidence and this helps the property market.

“2024 was positive and 2025 has started well for our Franchise Partners with strong buyer interest and good sales levels. The drop in the interest rate will serve – in the short term at least – to reassure buyers’ and homeowners, especially as we head towards the 1st April Stamp Duty increases.

“However, for as long as there remains uncertainty over the stability of the economy, further interest rate drops in 2025 cannot be taken for granted. We will proceed with cautious optimism, hopeful that the market will continue positively.”

One area where the sales market has been more difficult is in London, and Camilla Dell of Black Brick says that: “As the government attempts to repair the UK’s flagging economy London’s property market is – for the most part – treading water as 2025 begins.

“But there are signs of resilience, even some bright spots, and if, as predicted, the Bank of England cuts interest rates this month the spring market could mark a turning point.”

London home values rise but growth outpaced by rest of UK

In London, the median property value rose by £1,400 last year, compared to an average of £2,400 across the UK

By Emma Magnus

It’s bad news for homeowners in London: house prices in the capital grew less than the national average last year, new research shows.

House price data from Zoopla shows that half of all UK homes increased in value last year, with the average property seeing a £2,400 uplift. In London, however, only 40 per cent of homes rose in value, with the median London property increasing by just £1,400.

London recorded the fourth-lowest house price growth of any region in the UK, after the east, south east and south west.

Zoopla’s research highlights a clear north-south divide, with 41 per cent of homes across the south of England falling in value by an average of £8,700. In the south, just 36 per cent of homeowners saw their property prices grow in 2024, compared to 62 per cent across northern England and Scotland.

This split reflects the underlying affordability of homes, with soaring mortgage rates and higher property prices in the south of England reducing buying power. In the north, where house prices are more affordable in comparison to incomes, there is more headroom for values to increase, despite higher borrowing costs.

House prices fall in prime central London

Across London, though, the picture is more varied. Homeowners in prime central London —the capital’s most expensive areas— saw the biggest drops in value. In Kensington and Chelsea, where property values fell more than anywhere else in the country, 72 per cent of homes fell in price, with an average reduction of £44,300.

This was followed by Westminster, where 67 per cent of homes declined in value, representing an average drop of £23,200. City of London and Camden saw similar slumps, with the average property value falling by £22,300 and £21,600 respectively.

According to buying agency Black Brick, the drop in prices across prime central London in 2024 is due to a combination of global and national uncertainties, high buying costs and a general air of caution. Forecasters for the coming year remain divided, with Savills anticipating that prices in prime central London will continue to drop by four per cent, and Knight Frank predicting growth of two per cent.

“Sellers are having to be very realistic and willing to sell at really big discounts in order to achieve a sale in the current market,” says Black Brick’s Camilla Dell. “London will come back and now is a great time to buy prime assets. We have been amazed by how much prime stock there is to choose from at the moment, and there are quite a few people who need to sell to the extent that they are willing to sell at a loss. Others have owned their properties a long time and so they are willing to be pragmatic about price.”

London’s winners

Some parts of London, however, fared better than the national average. Waltham Forest was the capital’s biggest winner, with 64 per cent of homes increasing in value —the eighth highest nationwide— and an average uplift of £8,700.

In fact, all five of the top-performing boroughs were in east London. Over 55 per cent of homes increased in value in Barking and Dagenham (+£5,000 on average), Hackney (+£12,900), Redbridge (+£6,800) and Havering (+£5,200).

With the exception of Hackney, these are among the most affordable places to buy a home in London: Barking and Dagenham has the capital’s lowest house prices, at an average of £336,000.

On the whole, more affordable boroughs —often in outer London— saw the biggest increases in value, while London’s most expensive areas experienced price drops.

Croydon, Greenwich and Enfield are three outliers in this respect, having lower property prices and yet still seeing the average house price fall by £900, £3,800 and £4,300 respectively. In Enfield, half of all properties decreased in value, while 29 per cent remained stable and 21 per cent increased.

“Inner London has the highest home values and higher borrowing costs have had a greater impact on buying power compared to outer London where home values are lower creating some headroom for small price increases,” says Zoopla’s executive director Richard Donnell.

“London has lagged behind the rest of the UK when it comes to house price growth since 2016 with the Brexit vote, pandemic and higher mortgage rates having a bigger impact on the London housing market. As incomes rise faster than house prices, affordability is slowly improving and there is growing value for money in the London housing market.”

Outside London

Outside of London, homeowners in the north west and north east of England saw the greatest rises in value, at an average of £4,400 and £4,300 on average. Berkhamsted, in the east of England; Carluke, Scotland and Waltham Forest recorded the country’s largest average increases in house prices, at £24,500, £8,900 and £8,700.

Conversely, Kensington and Chelsea, Broadstairs and Ferndown, all in the south of the country, experienced the greatest average decline in property prices, at £44,300, £15,300 and £14,400.

“The housing market returned to growth in 2024 but the pattern of home value changes across Britain is far from uniform,” says Donnell. “There is headroom for prices to increase in markets where housing is affordable compared to incomes which covers many parts of northern England and Scotland.

“In contrast, affordability is more of a constraint on price rises in southern England where the market continues to adjust to higher borrowing costs. Faster income growth is helping to repair affordability supporting moving decisions in 2025.”

But while house prices across the country are growing on the whole, experts predict that this may be short-lived, with upcoming changes to stamp duty.

“A slowdown in house price growth is in the post,” says Tom Bill, Knight Frank’s head of UK residential research.

“As sub-four per cent mortgage offers dry up and stamp duty rates increase in April, rising borrowing costs will suppress demand more noticeably from the second quarter of this year. As demand spreads into more affordable parts of the country, prices in these locations will remain relatively more buoyant.”

Interview with Camilla Dell, Managing Partner & Founder of Black Brick Property Solutions

With Jeremy Laight

Camilla Dell is Managing Partner and founder of Black Brick Property Solutions LLP and has worked in the London property market since 2002. She is highly experienced in meeting the needs of demanding domestic and international property buyers.

During her career to date, Camilla worked for two of London’s largest and most successful estate agencies, Foxtons and Knight Frank, before setting up Black Brick in January 2007. Since then, Camilla has grown the firm from a two-person start-up to one of London’s largest, full service, independent buying consultancies. The Black Brick team collectively boasts over 100 years’ experience in the London property market and has successfully sourced and acquired more than £1.5 billion of residential property for private clients.

Camilla’s professional, energetic and tenacious approach to property finding, her total dedication to her clients’ needs and her expert negotiation skills have won her huge loyalty and trust amongst her clients who include some of the world’s most successful businessmen and entrepreneurs.

Can you share the story of what inspired you to found Black Brick, a leading and award-winning independent buying agent?

I started my career working for Foxtons in 2002. Jon Hunt the founder was a real inspiration to me. He is a self-made entrepreneur and grew the business from a single office start-up in Notting Hill to one of London’s most formidable and groundbreaking estate agencies, finally selling out for £360m. It was incredible to be part of that journey at that time and inspired me to go out and do my own thing. Jon and I are still in touch and friends to this day.

What would you say has been the most significant moment or milestone in your professional journey that has led to where you are today?

I love watching reality TV shows and in the early noughties, I was addicted to The Apprentice. I applied to go on series 2 and almost got chosen but didn’t quite make it. From over 100,000 applicants to be nearly chosen to go on the show really made me think about my future and gave me the confidence to start writing my business plan for Black Brick.

The London and UK property market is notoriously fast moving and competitive, so how on a day-to-day basis, do you continue to stay focused and ensure you best prioritise your time?

It’s too easy to get distracted in today’s modern world. There are so many channels these days all trying to grab your attention from Instagram, X and LinkedIn to the rise of the Whatsapp channels and of course email. At the end of the day what matters most is clients. Ensuring Black Brick has a steady flow of new clients and providing exceptional service to our existing clients is always the priority. I try not to pay too much attention to what others are doing and focus on attracting the best talent and refining our own systems and processes to stay ahead of the game.

Operating at the highest level often involves taking risks. But what role do you believe risk-taking plays in achieving success?

Setting up a business is risky. Walking away from a salary and the comfort of working for a firm takes guts. Risk-taking is essential if you want to create something. I believe in being realistic and taking calculated risks rather than risk for the sake of it.

When it comes to business, what is your leadership philosophy, and how do you use this to inspire and motivate those around you at Black Brick?

I have never believed in ruling from an ivory tower. We sit in an open-plan office. My team can approach me at any time for support. I believe in meritocracy. Reward big when it’s deserved. Party hard when things are going well and appreciate your team. My team know that I have their back and as a result, I have benefited from extreme loyalty with several members of my team having worked with me for over a decade.

Understanding and delivering against client property expectations must be incredibly rewarding but also challenging. What do believe is the secret to delivering the very best client experience?

Really taking the time to get to know a client, to listen, and to work out what makes them tick is crucial to being a good buying agent. Patience and perseverance are essential, along with the ability to get on with people from all walks of life. Being a buying agent is hard. You need to be analytical, and tenacious, have a high attention to detail, and be able to advise rather than sell and write reports to clients rather than just push a button and send a property brochure out. Estate agents often think they can be both. Sell and get retained by buyers, but the skills needed to be a great buying agent are hugely different to the skills needed to sell property.

We all know sometimes things don’t always go according to plan. Can you share a specific setback in your career, and how you utilised that experience to learn, grow and improve?

When I first set Black Brick up, I found recruiting hard. I recruited people I probably shouldn’t have. It’s a hard lesson, but over time you get to know what works well for your business and what doesn’t. I find recruiting talent much easier today than I did 18 years ago! I can tell within the first 5 minutes of an interview if someone is going to be right for us or not.

Entrepreneurs and founders are notorious for their long hours and facing challenges when it comes to balancing work and personal life. How do you manage this balance, and what strategies do you use to prevent burnout?

I have built a really strong support team around me both at work and at home that enables me to work hard but also maintain a good work-life balance. I am also a big believer in looking after yourself mentally and physically. I work out 4 hours a week and I do this during working hours, and I encourage my team to do the same. You can’t operate at the highest level if you aren’t looking after yourself.

What advice do you have for those aspiring to follow in your footsteps and enter the world of property search and finding? Are there key principles or lessons you wish you had known when starting out in this sector?

My biggest piece of advice to anyone looking at becoming a buying agent is to first learn the market. There are no shortcuts. Work for the best estate agency you can and get at least 5 years of solid experience under your belt. Advising buyers is impossible if you don’t first know the market.

Finally, when you reflect on your career in property search, and industry acknowledgement as one of the UK’s most influential and successful property professionals, what would you say has been your proudest moment to date?

There have been so many amazing moments from winning industry awards to presenting at prestigious events for the FT (Financial Times) and Bloomberg. I think my proudest moment was when the firm turned 10 years old. That felt like a real milestone. And the next proudest moment will be in 2 years time when we turn 20 years old – now that really will be something extraordinary to celebrate!

Our predictions for the UK housing market in 2025

Will interest rates fall again? Will landlords continue to lump it? And what will the new stamp duty deadline mean?

By David Byers

So 2025 is here and, much to everyone’s shock, estate agents are actually talking up the prospect of selling houses.

Among a blizzard of predictions in the first week of the new year, one from the estate agency Winkworth stood out. It boldly forecast that its website traffic would be “up 400 per cent on January 2” compared with … Christmas Day.

But what are the really valuable predictions for 2025? We gazed into our crystal ball and this is what we saw.

Mortgages will dictate where’s hot (and not)

The key question is: how high will interest rates be, and will they constrain the market?

Interest rates fell glacially in 2024, dropping from 5.93 to 5.48 per cent for a two-year fixed rate and 5.55 to 5.25 for a five-year deal — the slow pace of change challenged the market. This gradual fall ground to a near-halt after the October 30 budget, which the Office for Budget Responsibility said could stoke inflation, leading the Bank of England’s monetary policy committee to hold its base rate at 4.75 per cent in December.

This week, hopes of an early boost for rates appeared to have been dampened by a rise in yields on UK government bonds, which are used by banks to price fixed-rate loans. The yield on the UK’s ten-year gilt has risen to 4.84 per cent, up from about 4.55 per cent at the start of January and its highest level since 2008. Some smaller and more specialist lenders which are more sensitive to changes in market interest rates have raised their rates. If this continues, mortgage brokers said other lenders could follow.

So what’s in store for 2025? According to 51 economists polled by The Times, things could turn out better than expected. They think that the Bank of England will be forced to cut rates at least four times this year to boost flagging economic growth — an improvement on the previous widespread predictions of two cuts.

Whether this comes to pass will have a huge impact on the market, particularly in the southwest, southeast, London and east, where homes are more expensive. If rates remain sticky, buyers will continue to delay putting in offers, or do so at levels that sellers think are derisory.

It’s a scenario summarised by Nationwide’s analysis of 2024 released last week. It showed that the UK average house price went up by 4.7 per cent in 2024 (the strongest rate of annual inflation since October 2022), but it also showed a geographically divided market. The largest percentage rise was in Northern Ireland (7.1 per cent), followed by the north (5.9 per cent) and the West Midlands (4.7 per cent). Areas where prices are more expensive were by far the most sluggish. East Anglia, for example, had a 0.5 per cent rise, London 2 per cent and the southeast 2.3 per cent.

Data released last week by Halifax showed that the ten areas with biggest growth in 2024 were mostly towns with lower house prices, such as Stoke-on-Trent (17 per cent growth), Slough (15 per cent) and Oldham (15 per cent).

Table with 4 columns and 10 rows.

Stoke-On-Trent	£227,002	£33,339	17
Slough	£497,704	£64,510	15
Oldham	£250,546	£31,951	15
Bradford	£226,261	£26,168	13
Bolton	£252,070	£28,839	13
Barnsley	£224,886	£25,161	13
Wolverhampton	£278,083	£30,680	12
Doncaster	£228,040	£23,669	12
Dunfermline	£230,379	£22,365	11
Hamilton	£229,835	£21,474	10

Unsurprisingly, eight of the ten weakest areas for price growth were in London or the southeast, such as Ealing, Southwark and Kingston upon Thames.

The mortgage market will also influence what kind of homes sell well in 2025. During the pandemic, detached homes were hot, but that trend reversed last year, as buyers shunned pricier properties. Terraced houses increased in value by 4.4 per cent in 2024 and flats by 4 per cent, according to Nationwide. Semi-detached properties recorded a 3.4 per cent annual increase and detached properties rose by 3.2 per cent.

The lesson of this story is that if you’re selling a larger home, particularly in the southeast, buyers will continue to be very careful over price. Use your common sense — if you think your home may be overpriced, set your sights a little lower.

Our mortgage prediction: New rates will average just above 4 per cent by the end of 2025 (with a 25 deposit).

There’s no rush to join the stamp duty splurge

One thing that excites estate agents is a stamp duty deadline, as it usually leads to a herd of bargain-hunters stampeding towards their windows.

From April 1 the tax will kick in at a purchase price of £300,000 (rather than £425,000) for first-time buyers. For those who are not first-time buyers the threshold will go down to £125,000 from £250,000.

Data from the property portal Rightmove suggests that from April 1 only 8 per cent of homes in London will not incur stamp duty for first-time buyers, while 24 per cent of homes in the southeast would be stamp duty-free. That is in stark contrast with the northeast, where 73 per cent of homes will still be exempt from the tax.

Rightmove said demand from buyers in London had already been rising significantly towards the end of 2024 as people rushed to complete purchases before the deadline — stamp duty cliff edges often cause buyers to act recklessly. The discount introduced during the pandemic had been due to end on March 31, 2021. The number of sales from February to March that year leapt from 143,460 to 177,300. Then in June, just before the extended July 1 deadline when the tax-free threshold really did reduce, the number jumped from 114,800 to 204,370, according to the estate agency Savills.

Robert Gardner, the chief economist at Nationwide, said the spring deadline this year was “likely to generate volatility, as buyers bring forward their purchases to avoid the additional tax”.
However, buyers may discover that a stamp duty holiday is a con. These periods of tax discounts almost always drive property prices up so that, in the past, many bargain-hunters have ended up paying more for properties than any relative saving made on stamp duty. Ray Boulger from the mortgage broker John Charcol said on a typical £500,000 property, the extra stamp duty would make up only 0.5 per cent of the purchase price and so even a small decline in prices after April 1 would make rushing to beat the March 31 deadline a false economy.

Our house price prediction: UK-wide growth of 4 per cent. Biggest growth in northwest (5 per cent), weakest in London (3 per cent).

Dominant first-time buyers may cash in on landlords selling up

A stamp duty hike and high mortgage rates made 2024 the year of the disaffected landlord — this is set to continue. On October 31, the stamp duty surcharge paid by buyers of second homes went up to 5 per cent. A landlord or second-homeowner buying a property worth £500,000 faced an additional bill of £10,000 overnight, from £27,500 to £37,500.

Would-be landlords were also buffeted by high mortgage rates, with the average five-year rate at 5.46 per cent compared with 5.91 per cent a year ago, according to the website Moneyfacts Compare.

Zoopla suggested that many landlords were selling off their properties, particularly in expensive areas of London, with 32 per cent of all homes up for sale in WC postcodes having been rented out in the past four years. Across the country, it’s 12 per cent. Expect the number of landlord sales, particularly in wealthy areas, to grow in 2025.

One of the government’s aims is to free up room for first-time buyers, who make up 49 per cent of all purchasers nationally — one of the highest proportions ever — and, in some areas, like Manchester (75 per cent) and Slough (73 per cent), much more.

First-time buyers cashing in on landlord sales will be a big story in 2025. The estate agency Hamptons said in 2024 that the proportion of properties sold by landlords which were bought by first-time buyers was at its highest level — 35 per cent, up from 16 per cent in 2016.

First-timers also benefited from an unprecedented wealth transfer from their parents, a trend that will continue. Gifts and loans from the Bank of Mum and Dad totalled £9.3 billion in 2024.

Our first-timer prediction: The Bank of Mum and Dad will hand a record £10bn to their kids this year.

A mixed outlook for renters

Radical renters’ rights which are likely to come into law this year or next promise a ban on “no fault” evictions and will force landlords to improve the energy efficiency of rental homes. The flipside, if you believe the National Residential Landlords Association, is that the tax clampdowns will result in a shortage of rental properties as landlords sell up.

Rightmove reported in December that each available rental property was attracting 11 inquiries, compared with six in 2019. However, more positively, rental costs on newly let properties in Britain rose by 2.6 per cent over the year to November, the lowest annual increase since November 2020 (2.4 per cent).

Our rent prediction: 3.7 per cent UK-wide rise — but just 1.5 pr cent in London, where tenants have already absorbed huge increases.

Trouble in (prime) paradise?

For wealthier buyers, tax headwinds, such as the introduction of 20 per cent VAT on private school fees, will constrain them, although they won’t be too concerned about mortgages.

One other disincentive will be a raft of taxes for holiday homeowners, which contributed to a sharp fall in demand for pricey country houses in 2024. Agents also reported a growing sell-off of second homes in Cornwall, Norfolk and Dorset due to plans for massive council tax increases that are due in April.

Plus, for the richest buyers, many who come from overseas, Labour’s decision to end non-dom status has led to a near-collapse in parts of the super-prime property market in London.

An analysis by Beauchamp Estates using the LonRes transaction database, showed a sharp fall in sales of homes worth more than £15 million last year. A total of 40 such homes sold in 2024, compared with 54 the year before. The total value of the homes that did sell fell 34 per cent to £856.5 million, compared with £1.3 billion in 2023.

Those selling London and home counties properties in the £1.5 million to £2 million bracket may have more luck, however. Because of the shortage of quality family homes in affluent suburbs, agents say the right property of this type could sell swiftly — particularly if buyers are priced out of private schools in larger numbers and looking nearer to good state schools. “Last year we saw huge competition in the market up to £2m in four-bedroom Victorian terraces in West Hampstead and Fulham,” says Camilla Dell of the agency Black Brick.

Also in 2025, there may be an influx of liberal Americans fleeing due to the Donald Trump administration. Our prime prediction: A 5 per cent fall in prime central London, as richer buyers shun higher taxes, but down by 1 per cent in regional markets.

Black Brick: ‘This is the moment when the really smart money is buying’

‘We have been amazed by how much prime stock there is to choose from at the moment,’ says PCL acquisition firm, which has just secured an apartment in Kensington for less than half its original £30mn asking.

Property market predictions are proving unusually difficult this year, but a top acquisition firm has backed Savills’ view that PCL prices are likely to slide over the coming 12 months.

High-end stock continues to pile up across the prime postcodes, and Black Brick says buyers remain “extremely price sensitive”. Some eye-popping discounts are being secured as a result.

The firm is currently acting for an overseas buyer who is in the process of snapping up a six-bed flat in Kensington which originally went on sale for an “ambitious” £30mn. With no takers the owner gradually dropped the price down to a more reasonable £18m. An offer has just been accepted at £14.55mn, or £2,500 per square foot, less than half the original price. The team describes this as “outstanding value considering the property’s quality and location”.

“We have seen opportunistic overseas buyers come to the market who are looking for a deal, because they are obviously out there at the moment,” explained managing partner Camilla Dell.

“London will come back and now is a great time to buy prime assets. We have been amazed by how much prime stock there is to choose from at the moment, and there are quite a few people who need to sell to the extent that they are willing to sell at a loss. Others have owned their properties a long time and so they are willing to be pragmatic about price.”

Tom Kain, partner, said many of the vendors coming to the market have been waiting “literally years” for a good time to sell – from Brexit to the pandemic, through the outbreak of war in Europe and the Middle East, the cost of living crisis, and the 2024 General Election: “They have got to the point now where they can’t just sit it out any longer”.

Dell predicts house hunters will have a “solid window of opportunity” before prices start to increase in 2026: “This is the moment when the really smart money is buying”.

“I have never seen such a huge variation between the main forecasts,” she added. “Usually, the main estate agency forecasts are less than a point apart, but this time the differences are huge. My reading is that none of the agents really know where the market is headed next year and beyond.”

The firm suspects that Savills’ more conservative view of the potential for price growth will be closest to the mark: “Sellers are having to be very realistic and willing to sell at really big discounts in order to achieve a sale in the current market,” said Dell, but caveats that the reality is likely to be “far more complicated and nuanced” with certain property types in certain locations selling strongly and others continuing to dive: “Forecasts are not gospel, and London is a very complex market. There will be different outcomes in different parts of the capital. We continue to see a lack of supply for best-in-class family homes with gardens and parking in the most desirable streets of prime London, around Notting Hill for example, where bargain hunters may be disappointed.”

Other key trends flagged for 2025 include: heightened competition for big-ticket rental homes, as international HNWIs navigate the new non-dom rules; and further growth in off-market selling – it’s estimated that 50-60% of PCL properties are now discreetly marketed without ever hitting the portals. “I am on perhaps 50 WhatsApp chats to keep up with off market sales,” added Dell.

Lofty ambitions: The stratospheric demand for penthouse homes in London, Hong Kong and New York

Ruth Bloomfield talks to property experts in three major cities about the demand for penthouse homes and why they hold their value.

By Ruth Bloomfield.

They have sat at the very pinnacle of the world’s super-prime property market for the past century. And despite a year of global conflict and political upheaval, penthouse apartments continue to shatter price ceilings all over the globe. These top-floor, top-drawer homes attract huge premiums compared to regular luxury apartments. Experts agree that if you want a status symbol home with wow factor and investment potential, then the only way is up.

Members of London’s exclusive penthouse club include hedge-fund billionaire Ken Griffin, who recently spent a reported £100 million on the penthouse at The Peninsula London, a new building overlooking the grounds of Buckingham Palace. Not to be outdone, Russian tech mogul Andrey Andreev is thought to have spent £145 million on the penthouse (plus two adjacent properties) at Twenty Grosvenor Square in Mayfair.

For buying agent Camilla Dell, managing partner of Black Brick, this kind of high-rolling client wants more than simply a top floor flat. “It must have direct lift access – the lift opens straight into the apartment, not a lobby,” she explains. “It is about privacy, but also about being unique, one of one. It must have amazing landmark views and decent, usable outside space so you can enjoy being at the top of the building.

“The best penthouses now have phenomenal architecture,” Dell adds, “sweeping staircases, double-height atriums… a penthouse should have a real wow factor.”

According to recent research by Knight Frank, penthouses cost, on average, 43 per cent more than ordinary apartments. “I would say 30 to 50 per cent more, depending on the building,” says Dell. “And they should hold their value because they are so rare.”

The whole concept of penthouses began on the west side of the Atlantic, in 1920s New York, where developers first began creating premium penthouse apartments. Today, Raphael De Niro, real estate broker at Douglas Elliman, believes buyers pay big money for amazing views. Buildings also need to be highly serviced, with a doorman and concierge plus communal spaces like playrooms and lounges.

Penthouse prices vary depending on the location and quality of the building, but De Niro says buyers should budget between £33,000 and £99,000 per square metre. A regular apartment would cost £12,400 to £24,800 per square metre, representing a potential penthouse premium of up to 400 per cent.

Buyers are willing to pay more for a penthouse partly because of their privacy and views. “Wellness benefits like reduced noise, air and light pollution are becoming more important,” says De Niro. “It’s less about conspicuous consumption or having a public status symbol than 10 years ago.”

Hong Kong is one of the highest-density places on earth, which means that clear views and outside space are hugely sought after, says Thomas See, senior associate director, investment CEO Office, at Savills Hong Kong.

His buyers want an indoor/outdoor space to live in, plenty of square footage, high ceilings and breathtaking views, plus a well-run building with clubhouse amenities – and they’ll pay a premium of “at least 15 per cent” to secure one.

They also want to show the world how well they are doing, of course. “Acquiring a penthouse is viewed as a status symbol, signifying wealth and success,” says See. And in the long term he is confident these buyers will see a return on their investment, thanks to the scarcity of penthouses.

“While each building may have around 50 to 100 standard units, there are typically only one or two penthouse units,” he says. “Penthouses tend to hold their value better than other apartment types due to their limited supply and higher demand. Most penthouses are owner-occupied, making it rare for them to be listed on the market.”

‘Buyers need us when half of homes aren’t on Rightmove’

Black Brick boss Camilla Dell lifts the lid on her growing business and the unusual housing markets it operates within.

By Nigel Lewis

One of London’s leading home buying agents has revealed that in the Capital’s prime areas, a staggering 40-50% of homes for sale are not advertised on the big portals.

The comments have been made by Camilla Dell (pictured), who is Managing Partner at the firm she launched 18 years ago – Black Brick – as she tells The Neg her plans for the future.

This includes expanding the business outside of the capital, which she has already begun with a recently-launched operation in the South West of England, but also plans to go into property management on behalf of the firm’s wealthy clients.

“We realised that a lot of our customers value and need that kind of service at the moment because they are probably spending less time in the UK following the recent changes to the ‘non-dom’ rules, so they need their homes looking after and struggle to find suitable vetted tradespeople and trusted property managers,” she says.

“As well as needing someone to look after them, they often want to rent them out and find suitable tenants and we can help there too.”

Dell also revealed the reasons why the ‘buying agent’ sector has seen expansion in recent years. This includes the ‘off-market’ status of more and more homes but also the more fragmented nature of the London estate agency market, which is now served by 7,000 or more firms many of whom work from home.

“Buyers can go to the obvious big brands to find their next home in prime London, but increasingly the home they want is being marketed by a smaller independent estate agency or a self-employed agent, both of whom aren’t so easy to track down,” she says.

Education

“When I first set up Black Brick I spent a lot of time educating the market about what a buying agent does and what value we as a business add – but 18 years later more buyers are aware of buying agents and what they offer; so it’s a much more well-known and commonly-accepted service.

“And it’s not just for the super-wealthy any longer – we look after clients with budgets starting from £1 million now whereas back in the day people thought buying agents were for those only with budgets in the tens of millions.

“In many parts of London these days that includes first time buyers looking for their first home, and we’ve had people like that spending up to £2 million.”

Competition

But Black Brick also has more competition than it did 18 years ago, and recently one high-profile estate agency announced it was setting up an in-house buying agency, something Dell is sceptical of.

“There’s a reason why companies like Knight Frank have completely separate and independent buying agency operations; otherwise there’s a conflict of interest particularly if its done under the same brand name as the sales division.”

Any readers interested in helping Dell expand her business outside London should email her direct.

London faces plunging home prices as remote work continues to rise

By Mary Jacob

The City of London is grappling with a dramatic slump in property values, leaving investors and homeowners questioning the future of this once-thriving residential hotspot.

After years of steady growth, with property prices climbing 40.5% between 2013 and 2022, the City, located in London’s financial district, has seen a sharp reversal, the Wall Street Journal reported.

Sale prices in the area have tumbled by more than 10% in 2024 alone, far outpacing the modest 2.5% decline seen across inner London during the same period.

The City “has really died a death,” Tom Kain, a buying agent with Black Brick told the Journal. “That whole environment where people worked in the City for really long hours and wanted an apartment there is just not what people do anymore.”

For nearly two decades, the City was a beacon for property investors.

The completion of The Heron, a landmark luxury residential development in 2013, transformed the area from a purely commercial hub into a desirable residential enclave.

Developers rushed to cash in, launching high-end projects like One Bishopsgate Plaza, and adding a new wave of trendy restaurants and bars to attract well-heeled professionals.

But the rise of remote work, shifting buyer preferences, and rising interest rates have cooled demand.

“People are more open to commuting if they only have to be in the office a couple of days a week,” Nick Verdi, a director at Savills told the Journal.

“And at the same time, there is definitely more supply. A lot of stock has been built in the past 10 years.”

The result is a buyer’s market where homes that once sparked bidding wars now struggle to attract attention.

“When I started, you could literally put a property on the market on a Friday, book in 10 viewings over the weekend, and have a sale agreed on the Monday,” Karl Graham, head of sales at John D Wood & Co. told the outlet. “Now it is the other way around. You have five properties for every buyer.”

Peter Brewer, a semi-retired hedge fund manager, is one of the many homeowners caught in the City’s property slump.

In November, he listed his six-bedroom penthouse apartment for $5.02 million, hoping to turn a profit after a decade of ownership.

“Given the amount we paid for the flat and have invested in its renovation, I would have expected to put it on for £5 million ($6.25 million), not £4 million ($5.02 million),” Brewer said. “You’d be hoping for a pretty significant uplift after 10 years, but that is not the case.”

Despite the City’s luxurious appeal, the neighborhood’s rising prices have eroded its competitive edge.

“As prices have gone up, it has caught up with some of the more traditional, desirable residential areas,” said Kain. “People would prefer to live in Mayfair or Marylebone. When it represented value for money, it made more sense.”

The City’s challenges extend beyond falling prices. The shift toward hybrid work has significantly reduced the number of daily commuters, with weekday trips to the City dropping 21% between 2023 and 2024, according to the Virgin Media O2 Movers Index.

Even institutional demand has waned.

While some companies, like Goldman Sachs, have pushed for a return to the office, others, including the Bank of England and Lloyd’s of London, allow flexible schedules that keep workers home for much of the week.

The 5,000 employees at the Bank of England, for instance, only need to spend 40% of each month working in the office.

Coupled with tax changes that have made property investment less attractive, the City is struggling to maintain its momentum as a residential hub.

Pubs, clubs (and a Gail’s) are the key to a happy, healthy neighbourhood

While proximity to a Waitrose is essential for many house-hunters, a high street where you can pop into your local for a pint and enjoy leisure facilities is key

By Zoe Dare Hall

Where once it was the sight of a Waitrose that lit up house-buyers’ eyes, reassuring them that this must be a desirable place to live, now it’s a local pub that’s the most prized “local amenity”, according to research by Jackson-Stops.

“They say that having a dog makes a home, but perhaps for British homeowners having a pub makes the perfect community,” according to the estate agency’s chair, Nick Leeming. His findings echo those of the British Beer and Pub Association’s Long Live the Local campaign: that more than a third of house-hunters rank a good local pub above gyms, places of worship or even schools.

Many will beg to differ. Now that we’re all less monogamous in our supermarket choices, swayed by deals and spiralling food costs, homebuyers may be as happy with a handy Aldi these days. Maybe it’s the sight of a Gail’s bakery rather than a Greggs that helps to sell houses — or the more practical concerns of having a local doctor’s surgery, post office or that rarest of beasts, a bank.

“In Oxted in Surrey, which attracts a lot of London families, a new private GP practice called the Well Life Clinic is big news as buyers want these services locally that they would otherwise have to commute into central London for,” says Melanie Attwater, an independent Surrey-based estate agent.

What most agree on is that a thriving high street makes for a happier, closer community, with just over half of UK adults saying that it’s essential when choosing a home, and 28 per cent claiming they would move if a great local high street were nearby, according to research by the specialist lender Market Financial Solutions.

Last year, more than 10,000 stores closed on UK high streets, opening up opportunities for more experiential offerings, including restaurants, leisure activities and health centres, according to the House of Lords’ Built Environment Committee’s High Street: Life Beyond Retail report that was released last month.

To reverse high street decline, says Lord Moylan, the committee’s chairman, “they need to look beyond being simply a destination for shoppers. Retail will always be important, but people want to see a variety of businesses and other services such as NHS diagnostic centres and libraries on their high street.”

So what are the new linchpins of a happy, healthy high street that persuade property buyers to move in?

Why you can’t beat a local boozer

It’s tricky to put a price on having a great local pub, but Bruce King, director at Cheffins estate agency in Cambridge, estimates that properties in the village of Ickleton — whose community-owned pub, The Ickleton Lion, is “a real linchpin”, he says — command a price premium of 10-15 per cent over neighbouring villages. The village’s independent shops, post office “and a great social club” add to its appeal, King says.

In north Norfolk’s gastro-pub golden triangle, which includes Holt, home to the Michelin-starred Morston Hall, “buyers see living near one as a chance to live the aspirational North Norfolk lifestyle. It’s about being close to the very best,” says Tom Goodley, the head of Strutt & Parker for Norfolk.

And in Bristol, “The Kenny”, as locals fondly call the Kensington Arms in Redland, is about more than its cuisine. “It has a welcome, local-first ethos,” says Jerome Lartaud, the co-founder and director of Domus Holmes Property Finder. “A good pub remains an anchor point for many buyers, but the focus has shifted towards pubs that foster community.”

Membership clubs

Forget stuffy, old gentleman’s clubs. The new breed of membership club is more accessible, affordable and relevant to a post-Covid crowd wanting to combine flexi-working with fitness, childcare or simply avoiding the tedium of working from home.

David Lloyd health clubs are now full of people veering between laptop and spinning class. “The one in Westbury-on-Trym in Bristol in particular has become surprisingly pivotal in buyer decisions,” Lartaud says, while Joseph Antoniazzi, the sales and marketing director of Barratt West London, adds that “a new David Lloyd in an area is most definitely a symbol of regeneration”.

In the Cotswolds, “the world’s ultimate neighbourhood club cluster”, according to Knight Frank estate agency, vendors will try to capitalise on their proximity to clubs such as Estelle Manor, The Club by Bamford and Soho Farmhouse, even when they are up to 60 miles away. Knight Frank also finds that properties within a 15-minute drive of Soho Farmhouse have more than twice the number of interested buyers as those in adjacent areas and sell twice as fast as properties more than five miles away.

“Ten years ago, private clubs wouldn’t have been a consideration for buyers outside London or the Cotswolds. Now these clubs are appearing across the country,” says Edward Brassery of Strutt & Parker in Stamford, Lincolnshire. He pinpoints Woolfox in nearby Rutland, “a modern wellness club that fits perfectly into the lifestyle of today’s buyers. Stamford and Rutland are often likened to the Cotswolds, so it’s no surprise that such a club has found its home here.”

Lighthouse Social, which opens on the riverfront in Fulham, west London, next March, typifies the new generation of membership clubs for the local community, says Jamie Caring, founder of Sevengage, a consultancy that specialises in community building. “Our focus is on creating a genuine ‘third space’ where there’s no pressure to dress to impress or prove how connected you are. It’s about connecting with friends and neighbours, shared proximity and experience. I like to use the ‘broken car’ analogy: if your car breaks down, a neighbour is far more likely to step in and help, simply because you share that connection of living in the same place.”

Schools

We all know about class wars — school classes that is. The skullduggery among parents knows no bounds, such as renting flats they don’t live in, or feigning temporary separation to secure an address in the catchment area of their desired school.

But when you’re weighing up the factors that point to one house purchase over another, being near a great school isn’t just the cherry on the cake; it’s the key ingredient that you can’t bake the cake without. And parents will pay premiums of 10-20 per cent for a house within a hallowed catchment area — not that a school place is ever guaranteed.

Having a great school on your doorstep comes with wider benefits beyond the quality of its education, however. You can walk there. Your child’s friends all live nearby. And the school plays an important social role in the local community. “Any community is a series of connections, which evolve easily if you have kids in the same class,” says Edward Church, head of Strutt & Parker in Kent, who cites the village primary school in Challock, and the variety of schools in Sandwich, including Sir Roger Manwood’s, as being fundamental to creating a close sense of community.

“There’s a snowball effect too — you then meet other families at sports clubs or Brownies. If you send your child away to school, they make different connections but they don’t interlink,” adds Church. “It also helps with the planning process. Planners want new homes to be built where there are existing facilities, and if the local school is thriving, that leads to more houses, which means the school and village continues to thrive. It’s a self-fulfilling prophecy.”

Butchers, bakers and cappuccino makers

For Chris Dietz, president of Leading Real Estate Companies of the World, Gail’s bakery — purveyors of the £4.50 Christmas bun — is “the northern star sign of gentrification”. Nina Harrison, at Haringtons, a London buying advisory, begs to differ. “For me, Gail’s has become rather passé. True bragging rights now belong to neighbourhoods boasting a genuinely independent coffee shop — one that’s not poised to roll out 60 identikit branches funded by private equity in the coming months.”

This butter-laden new pillar of high street aspiration may be a polarising one (Walthamstow, Brighton and Worthing are among the locations to object to the opening of a Gail’s), but it’s undeniably popular. “Despite the opposition, it has people queuing out the door whenever I walk by,” says Emily Smart, a 31-year-old account director who lives in Walthamstow, northeast London — which has plenty of independent alternatives on offer too, including coffee shops Hucks and Ruttle & Rowe, and the Cantonese/British bakery Lucky Yu, whose devotees track its ad hoc opening times on Instagram.

This sense of identity that such shops foster is a big part of the attraction for young buyers in Pocket Living’s Forest Road E17 development, where flats start at £300,000. “Our residents often talk about it being a very chilled but buzzy place to live, with a strong sense of community. People look out for one another here,” says Jenny Anson, Pocket Living’s head of sales.

Nowhere does indie quite like Bristol, though. “Many of the most successful businesses are local brands, such as Fed café or Bristol Loaf, and we talk to buyers as much about the lifestyle of the area — which park they’ll go to with their cappuccino and cockapoo on Saturday morning — as the property they’re looking at buying,” says Nick Stopard, the founder of Boardwalk, an independent (of course) estate agency.

Buyers in nearby Bath prize a similarly alternative vibe. “I’ve noticed more than ever the appeal to buyers of lifestyle-driven hotspots — places where you can stroll to an artisan bakery like Landrace or join a sunrise yoga session at Combe Grove,” says Peter Greatorex, the managing director of Peter Greatorex Unique Homes. “It’s often these distinctive touches that seal the deal, far more than big-name amenities.”

And finally, the new Waitrose …

… is still Waitrose. “Buying property near a Waitrose is definitely a key selling point,” says Camilla Dell, the managing partner at Black Brick buying agency, which focuses on the prime end of the London market.

Robin Edwards, partner at Curetons, a London-based buying agency, cites the panic of one client who was relocating to the countryside. “I had to check that both Ocado and Waitrose would deliver to any property I showed them. We’ve never experienced that devotion with any other supermarket chain,” he says. “Aldi is opening in Fulham Broadway, which you’d never have imagined possible a few years ago. But handy as they are, I can’t say any of our buyers have ever got excited by an Aldi or Lidl.”

Super-prime London’s cut-price property deals

The haggling is in full swing: with a near record number of unsold new homes and the wealthiest reconsidering their options, estate agents are sweaty palmed, but savvy buyers are scoring hefty discounts.

By Beatrice Hodgkin and Hugo Cox.

Earlier this year, a client of buying agent Camilla Dell offered £3mn less than the c£20mn asking price for a home in a prestigious central London development completed in 2020. As the months wore on, the seller returned to Dell twice with revised prices above what she had offered. Each time, Dell’s client refused. Finally, a few days after the October Budget, the seller accepted the original bid.

“The public line is that new homes never sell with a price cut, but now that’s just nonsense,” says Dell, founder of Black Brick. “It’s a measure of how much power buyers have: in nearly 20 years the only market as good for buyers as this one was the few months following the financial crisis [of 2008].”

In super-prime central London, beloved playground of the world’s richest entrepreneurs, aristocrats, financiers and oligarchs, the haggling is in full swing — even for homes in new developments — as trophy-home sellers across Mayfair, Kensington, Belgravia, Knightsbridge and Chelsea drop their prices to achieve a deal.

In part, it’s because the buyer pool is diminished. Non-doms, considering where to buy their next home, are seeing less reason to pick London now their tax perks will be removed under measures set out by the new Labour government. Added to this, borrowing costs are high; an inflationary October Budget suggests they will remain so. And, in friction to the nationwide home shortage, unsold new homes in central London are close to record levels, as transactions stall.

In the three months to September, 102 homes sold for £5mn or more in London, down from 155 one year earlier, according to Savills, which predicts prices will fall next year.

Dell lists other recent deals she has struck for clients this year: nearly £3.5mn off a £13.5mn Knightsbridge town house and £475,000 off a £2.35mn Chelsea apartment; £1mn off a £4.75mn mews house near Sloane Square.

Never hasty to call a market downturn, selling agents for the upper tier of the sector are nonetheless steeling themselves.

“The probability of our market improving in the next six to 18 months is very slim,” says Jake Russell, head of sales at Russell Simpson, a central London estate agent that has sold 55 homes for more than £5mn since March. “Sellers are becoming acutely aware of that.”

A year ago, he listed a home for “just under £20mn”. By April, when it had received 40 to 50 viewings but no offers, he arranged a meeting with the sellers. Russell advised they drop the price by 15 per cent. They agreed; several prospective buyers who had viewed the home previously made offers; within a few days it had sold. Russell’s clients — downsizers — are now renting. They plan to buy but are in no rush, anticipating lower prices if they wait.

Thinking like this further depletes the buyer pool, increasing the leverage for those who are willing to transact now. The longer we were [looking] the more homes came on the market; later in the year prices made more sense.

I was in no rush and I felt more and more powerful ‘Annabel’, a recent first-time buyer of a house in St John’s Wood Annabel is in her early thirties and recently bought her first home. Over the course of 2023, she felt her bargaining position strengthen as the number of suitable properties grew and their prices fell.

“The longer we were [looking] the more [homes] seemed to come on the market; later in the year [asking] prices made more sense. I was in no rush and I felt more and more powerful,” says Annabel, who declined to give her real name. She saw a dozen homes, had offers accepted on two — each time, 10 per cent below the list price — but pulled out of both purchases because of surveys or delays from sellers.

Finally, more than a month after viewing it, she offered £375,000 less than the £2.45mn asking price for a house in St John’s Wood. The seller accepted immediately.

On a recent November evening in Sautter of Mount Street, Mayfair’s celebrated cigar store, talk is of a changing mood. The rarefied smog (Sautter enjoys an exemption from the UK’s smoking ban) envelops a mostly male, international crowd, including a high-end tailor and a cigar shop owner from Hong Kong, both in their early thirties, a plump fiftysomething man with a thick Midwest American accent and 29-year old Charles Jerbus, originally from France. At Sautter of Mount Street, one cigar-smoking customer laments ‘my social circle is leaving’; his own parents relocated from their Belgravia town house to Zurich last year.

Between puffs on a short fat cigar, Jerbus explains how the tax changes and new Labour government are reshaping his social set. His parents, who arrived in London from Dubai in 2020, relocated from their Belgravia town house to Zurich last year when his mother, who “saw the [tax] changes coming”, took a new job there. “My social circle is leaving, it really accelerated after the election,” he says. Those departing include some of the leading classic car dealers, Jerbus’s profession, despite London’s prominent role in the sector. This year, 9,500 of those with £1mn or more of investable wealth are projected to leave the UK, double the number who left last year and six times the 1,600 who left in 2022, according to London-based Henley and Partners, which advises wealthy individuals on their residency choices. Only in China are they leaving faster.

One of this UK number, a Brit by birth, now a non-dom and working in private equity, who is currently in the process of securing himself and his wife passports for another country, sold his £24mn central London home shortly before the Budget.

Paul Welch arranged the man’s mortgage to buy the home two years ago, through his London-based company Million Plus Private Finance. “Once upon a time, a client like this would keep hold of their home, refinancing as a buy-to-let,” Welch says. “Today, with mortgage rates so high they are much more likely to sell.”

Last year he arranged 22 London home mortgages for more than £5mn; in 2022 the number was 14. So far this year, he has arranged three. 9,500 Those with £1mn or more of investable wealth projected to leave the UK this year; in 2022, the number was 1,600 (Henley and Partners) Some non-doms leaving the UK will keep their homes to retain a London base, according to Lucian Cook, head of residential research at Savills.

“But many who had been planning to move to London — as non-doms — and buy a home will now decide not to, so demand for [high value] homes will fall.”

Non-doms are not Welch’s only clients looking to sell their London homes. One, an elderly woman who owns a £5.5mn town house with a £2mn mortgage, has been renting it out for more than a decade. Last month she put the home up for sale.

“The rent no longer covers the cost of the mortgage. When she can get more than 5 per cent on the [proceeds of the sale] in the bank, selling is a no-brainer,” says Welch.

In the six weeks to the end of November, the best mortgage deal Welch could find for clients wishing to borrow £10mn at 60 per cent loan-to-value (LTV) increased from a rate of 3.68 per cent to 4.19 per cent. Several factors suggest high rates could continue. First, the Budget was judged to be inflationary by both the Office for Budget Responsibility and the Bank of England. Second, “Trump’s presidential victory signals looser US fiscal policy, meaning tighter monetary policy [to control inflation] increasing pressure on the BoE to follow suit,” says Andrew Goodwin, chief UK economist at Oxford Economics.

Three weeks after the Budget, prices in swaps markets implied a fall in the UK base rate to 4.1 per cent by the end of next year — half a percentage point higher than the pre-Budget forecast of 3.6 per cent. Slower than expected falls in interest rates signal borrowing costs are likely to stay higher for longer, reducing buyer budgets and willingness to borrow.

But sellers, mindful of the forces holding buyers back, may see a clearer case for cutting prices to lure them into a deal. Standing proud on Whitehall is the Old War Office, centre of operations during the second world war, and later the backdrop for the 1956 Suez crisis and the 1960s Profumo scandal — then, in September 2023, reborn as 85 upscale residences managed by Raffles Hotel.

Today, it is one of 15 completed high-end developments in central London with homes still for sale — including 60 Curzon in Mayfair, The Broadway on the Westminster site that once housed New Scotland Yard, and Belgravia’s Peninsula Residences.

Apartments in One Kensington Gardens have been selling since 2015. Central London’s total unsold new homes have averaged 411 over the past five years, more than double the 192 of the preceding five years, according to Molior, which specialises in London new-build data (this counts developments larger than 20 units — more than 90 per cent of new homes, it estimates).

There may be few developments in the pipeline — since 2014 stamp duty increases curbed demand for prime central London homes, developers have avoided starting new projects — but even at last year’s sales levels, the current rump of unsold homes would take roughly 18 months to clear. And, with average sale prices since the start of last year at £3,538 per sq ft, according to Molior, that would be no mean feat.

“Last year, unsold homes were at their highest since we started collecting data in 2009,” says Sam Long, senior research analyst at Molior. “There is an imbalance between supply and demand.” Those who are in a position to buy are taking full advantage of their strong bargaining position. Many are from the US, where the authorities tax citizens’ worldwide income wherever they are based.

“Non-dom regime or no — it doesn’t make any difference,” says Welch, who highlights that the buyer of the £24mn Mayfair home was an American entrepreneur.

“While there has been no tsunami of fleeing Democrats arriving since the election, I have plenty of US customers on my books who are looking to buy,” says Roarie Scarisbrick of Property Vision, a London-based buying agent.

In Knightsbridge, buying agent Camilla Dell says she negotiated £3.5mn off the £13.5mn asking price of a town house for a Middle Eastern buyer.

In Kensington, Chelsea, Holland Park and Notting Hill, British, Europeans and Americans dominate — typically families whose primary home and workplace is London and who plan to be here for the long term, says Russell. Cook adds that this group of “necessity” buyers will form an increasing share of transactions in the coming years.

Other buyers from abroad emerged from the October Budget feeling friskier than non-doms. The buyer whom Dell helped negotiate £3.5mn off the £13.5mn Knightsbridge town house is from the Middle East, and will use the home only for holidays.

“They won’t spend enough time there to be judged a non-dom,” she says. Several others of her clients are buying for children who plan to make London their home. Neither group will be fazed by the 2 per cent stamp duty increase on second homes, she adds.

The same is true of many of Russell’s buyers, he says, looking down the list of £5mn-plus homes his agency has sold since March in Mayfair, Belgravia and Knightsbridge. “Indian, Greek, Swiss, Lebanese, Chinese, Turkish, Nigerian, French, Portuguese . . . ”

‘It feels as busy as this time last year, for sure,’ says one visitor at the illumination of New Bond Street’s Christmas lights.

In May, a company controlled by Natasha Poonawalla, an executive director at the Serum Institute of India, the vaccine manufacturer owned by the Poonawalla family, spent £42mn on a building in Mayfair’s celebrated Grosvenor Square.

This is not the only recent purchase by Poonawalla, who could lose the tax benefits provided by the non-dom regime when it ends.

Last December, she and her husband Adar, who leads the family business (but who spends too little time in London to be covered by non-dom rules), spent about £138mn on a 25,000 sq ft home near Hyde Park, London’s second most expensive home sale ever.

At roughly £5,520 per sq ft, the home near Hyde Park hardly qualifies as a bargain. By contrast, the Poonawallas paid c£1,560 per sq ft for the Grosvenor Square building (it had not had a full-time tenant for several years and was marketed for commercial use).

A 10-minute walk to the east of Sautter cigar shop, the gathering for the illumination of New Bond Street’s Christmas lights seems to signal bright prospects for London’s premium home market. Beside a pop-up bar, four carol singers belt out an arrangement of “O Little Town of Bethlehem”.

This being New Bond Street, the bar is a converted 1934 Rolls-Royce coupé whose customers sip champagne behind velvet ropes. The carol singers, who sound like they belong in the opera, are impeccably dressed in black tie. “It feels as busy as this time last year, for sure,” says the woman who chaperones them, a clipboard clutched against her plush winter coat.

Outside the store of Chanel, the sponsor of this year’s lights, a large crowd gathers to listen to representatives of a local business association lauding a bumper Christmas season for local retailers. The street is rammed.

Scarisbrick is unsurprised; he reckons the most affluent are staying put, and holding on to their central London homes.

“Yes, some [wealthy residents] are considering their options, and having an exploratory [relocation] tour of Milan or Dubai,” he says.

“But what they’re not saying is: ‘holy shit, I have to get rid of my house’.”

This is why your home won’t sell

Estate agents and property experts tell the brutal truth about the ten things they know will sabotage a sale – and the nine that their buyers now demand

By Graham Norwood

The housing market is hotting up with prices and sales set to head north in the coming months, according to the respected Royal Institution of Chartered Surveyors.

Online agency Yopa says there are 84,000 more homes listed for sale in the UK today than at the time of last month’s Budget – an increase of 11.4 per cent.

This means sellers need to emphasise what makes their home extra-attractive to would-be purchasers – and not let buyer turn-offs get in the way of a deal.

We’ve spoken to estate agents and property experts to reveal the most sought-after home features – and the ones to avoid at all costs.

What buyers hate

Bonkers house names

‘Buyers dislike inappropriate names,’ explains Jason Corbett of Rowallan Buying Agents. ‘They’ll be bitterly disappointed if they expect a decent-sized family home called “Manor House” but it’s actually just a small cottage.’

Dr Lynn Robson of Oxford University, a house title expert, says names like The Barn often reflect what owners would have liked the property to have been, even if it’s really in the middle of a housing estate. And she warns that odd names can be a deterrent. ‘Would you buy “Cobwebs” if you’re afraid of spiders?’ she asks.

Modern fittings in period homes

‘Bad quality double glazing and especially plastic windows in period properties are unpopular,’ says Karen Hedges of the John Payne agency in south east London. Fittings must compliment the aesthetic of the house, not clash.

Cheesy 1970s features

Magnolia paint or carpets in bathrooms and kitchens are big no-no’s for Alastair Cochrane of the Stirling Ackroyd agency. Meanwhile, Tony Wheeler, of the Leaders agency, says other throwback nightmares include ‘textured ceilings and outdated appliances’.

Decking

Nick Cunningham of Stacks Property Search warns: ‘Unless it’s obviously part of a design scheme and beautifully installed, decking can be viewed as a cheap and lazy option – think quick home transformation TV shows.’

If you have decking and don’t want to scrap it, make sure it doesn’t show its age through insect damage, rotting boards, or exposed screws becoming trip hazards; a thorough re-sealing and re-painting will boost appearances.

Gnomes

‘They’re appalling. People laugh at them and sometimes laugh at the owners too. It sets the wrong tone about a home so hide them in a shed during a viewing,’ recommends Dorset buying agent Tracey Adamson.

Clutter

Take a leaf out of Stacey Solomon’s book and sort your life out – otherwise say goodbye to a quick sale. Josephine Ashby of John Bray cautions: ‘Buyers simply can’t imagine the space without the mess. Switched-on buyers will also notice lack of storage space. In compact properties where hidden space can’t be created, this is a big negative.’

It’s not just space. Some agents say buyers who see a messy home believe it’s an indication that the sellers may not have been organised or bothered to maintain the property in peak condition.

Smelly homes

‘Buyers use all their senses and smelly houses are a hard sell,’ says Rachel Johnston of Stacks Property Search. ‘Some are an easy fix – for instance niffy teenage bedrooms and bathrooms, or pet and cooking odours, but they can still lead to bad impressions. But other smells are more damaging when it comes to selling; proximity to pungent farms, or an underlying smell of damp.’

One London agency, Petty Son & Prestwich, even recommends avoiding strong ‘homely’ odours such as percolating coffee or fresh bread which can distract buyers on a viewing. Instead it suggests subtle citrus, pine, jasmine or cinnamon.

Problems next door

If there are disputes with neighbours over noise or boundaries, these should be declared on a Property Information Form when you sell – and there are legal risks if you fail to do so, but the problem returns after the new owner moves in.

It’s not just the folks next door who can be a turn-off. ‘Close proximity of electricity pylons is a cause of concern for buyers. Although walking distance to local schools is usually a positive, if the property is adjacent to a school then traffic and parking issues can be off-putting,’ according to Scott Caudwell of Leaders Romans Group.

Unfinished jobs

Buyers dislike poorly-built extensions, unsympathetic alterations, awkwardly-shaped rooms,’ says Michael Zucker of estate agency Jeremy Leaf & Co. And the boom in home working means fewer people want the disruption of builders coming in to make big changes or put right botched work commissioned in the past by the seller.

Rupert Stephenson of the Black Brick Buying Agency adds: ‘The cost of building works has sky-rocketed recently and buyers want property which is immaculate or is a complete wreck – but wrecks are eye-wateringly expensive to put right these days, so these have to be dirt cheap to attract any interest.’

A pushy seller

Leave the sales pitch to the agent selling your home – that’s what you pay them for. A property professional will also get valuable feedback from viewers who would be afraid to tell an owner directly, while teasing out information about the buyer such as whether they are ‘ready to go’ or simply looking at properties out of curiosity.

Nick Ferrier of the Jackson-Stops agency says: ‘Having the seller shadow the agent during viewings can make potential buyers feel uncomfortable and unrelaxed. When selling a house, it’s all about first impressions – you’re selling a lifestyle. A buyer needs to imagine themselves there, not feel they are in someone else’s home.’

What buyers love

Original features

‘Original, well cared for character features are a must,’ says Emma Capon of the Fine & Country estate agency. Or – in the words of Karen Hedges of the John Payne agency in Greenwich: ‘Absolutely anything original, even if it’s falling down.’ Original beams are hugely sought-after, as are reclaimed wooden floors.

Open fires

‘An open fire is essential in a period house,’ says Clare Coode, regional director of Stacks Property Search agency. ‘I saw a beautiful country house that took four years to sell, chiefly because there was no fireplace in any reception room. A period house without a fireplace is like a summer’s day without sunshine.’

A downstairs loo

‘It’s something buyers don’t think about until it’s missing – and then it can end up being a deal-breaker,” explains Sarah Cull of Strutt & Parker, who believes they’re essential for modern families or anyone who enjoys entertaining. ‘Older period homes don’t always have the space, but if there’s potential to add one in, it’s always worth the investment.’

Big windows

‘Light sells,’ according to Clare Coode. ‘Big windows with a view are always a winner, as are window seats, conservatories and roof lights.’

A recent survey by the company Rooflights found that 84 per cent of home buyers valued the amount of natural light in a property as the most important factor in their search.

Dedicated home office

Government figures show 41 per cent of UK employees work some or all of the week from home – so sellers should make this part of their offer to buyers. ‘Carving out a dedicated space for home working – even just on a landing, or a nook off another room – makes houses more versatile for those with a hybrid working pattern,’ says Amy Reynolds of Richmond agency Antony Roberts.

Gardens

‘An oasis of calm where buyers can imagine escaping from hectic daily life is highly prized by buyers of everything from small cottages to town houses to large manors. Big isn’t necessarily beautiful; more important is aspect combined with clever landscaping and planting,’ explains Ms Ashby.

But remember it’s horses for courses. A property that’s likely to sell to an investor as a buy to let, or to someone wanting a holiday home, will be more attractive if the garden is low maintenance. For a family house, especially a larger one, a substantial garden would be a dream for green-fingered buyers.

Space for the car

Whether it’s a garage, fancy driveway or an old-school carport, this is a must-have for many buyers, especially if they have or want an electric vehicle requiring charging.

And in some areas, ‘it’s also due to all the flashy Range Rovers being stolen’, admits Robert Keeble of Surrey agency Langford Russell.

A great kitchen

‘We’ve become a nation of foodies – much more than we used to be – so buyers love a gorgeous kitchen,’ says Richard Freshwater of Cheffins estate agency.

He adds: ‘A beautifully crafted kitchen, whether it’s traditional with a charming Aga, or with contemporary finishes, is always appreciated. And people just love a beautifully organised pantry, with neatly lined up condiments and homemade jams.’

A third of estate agents polled by Propertymark, the agents’ own trade body, suggested that a quality kitchen was the most significant factor in swaying prospective buyers in favour of putting in an offer.

Energy efficiency

This is measured by the rating on the Energy Performance Certificate that’s displayed when your home goes on sale. A is the best, G the worst.

Ed Jephson of Stacks Property Search says: ‘When EPCs were first introduced, they felt like just another box to tick with little real value. However, as awareness around energy efficiency, environmental impact and rising energy costs grew, ratings have become a key consideration for buyers.

‘A bad EPC can be a big turn-off for buyers, especially those who aren’t planning any renovations. A bad EPC on a property that requires modernisation is something that may be tolerated; but on a property that is beautifully finished and ready to move into, it’s a big headache as retrofitting is costly.’