While London’s reputation as a global hub for refined living remains intact, recent figures suggest that even the most resilient real estate market is not immune to policy-induced hesitation. In October 2025, the capital’s luxury property sector experienced a striking slowdown in activity, with a nearly 65% year-on-year drop in the number of sales above £5 million.

This market cool-down precedes the unveiling of sweeping new fiscal policies anticipated in the UK’s upcoming budget. With tax increases on the horizon, both domestic and international investors—particularly those in the 1%—are adopting a wait-and-see stance.