Property transactions across prime London postcodes fell 31 percent in the second half of 2025, with average monthly completions dropping from 1,431 to just 987 as tax changes and non-dom reforms dampened buyer demand.
Analysis from Jefferies London shows a dramatic slowdown even before the current Middle East conflict added fresh uncertainty for international buyers.
Tax burden and non-dom rules drive exodus
The data reveals an average of 1,431 property transactions completed per month during H1 2025 across prime London postcodes. By the second half, this had fallen to just 987 monthly transactions – a 31 percent decline.
Only three prime London postcodes saw increased activity in H2: the W1K postcode covering Mayfair and St James’s recorded a 25 percent rise, followed by WC1N (Russell Square) up 11 percent and WC1H (St Pancras) with a modest 4.2 percent gain.
At the other end, some core prime central locations saw sharp declines. WC2B (Drury Lane, Kingsway and Aldwych), W1D (Marylebone, Fitzrovia and Soho) and W1J (Mayfair and St James’s) all recorded 60 percent drops in transaction levels during H2.
This follows Landlord Knowledge’s earlier reporting on Central London property values falling 12 percent as the tax burden mounted. The transaction data suggests the pricing pressure is now translating into significantly reduced market activity.
International buyers face multiple headwinds
A Jefferies London spokesperson said: “This slowdown reflects wider conditions across the prime central London market, where a combination of tax changes, revisions to non-dom rules and a prolonged period of higher interest rates have all weighed heavily on buyer demand.”
The spokesperson added: “As a result, fewer deals are being agreed and transactions are taking longer to complete, something clearly reflected in the drop in activity seen during H2. Renewed uncertainty with respect to the current situation in the Middle East has also added an additional layer of complexity for many international buyers, particularly those impacted by weakening currencies against the pound.”
For landlords and investors, the prime London slowdown creates both risks and opportunities. Those holding high-value assets may find longer sales timelines, while cash-rich buyers could find motivated vendors willing to negotiate.
What this means for landlords
- If you’re holding prime London assets: Be realistic about current market values and expect longer sales timelines if exiting – the buyer pool has shrunk significantly
- Watch for: Non-dom rule changes taking full effect may trigger further sales from international owners, adding supply just as demand weakens
- Bottom line: Prime London’s difficulties reflect broader landlord headwinds writ large – high tax burden, regulatory uncertainty and volatile borrowing costs
Editor’s view
The 31 percent transaction collapse in prime London is a warning flag for the wider market. When even the wealthiest postcode buyers step back, it signals deep uncertainty about UK property’s investment case. The combination of stamp duty surcharges, non-dom changes and geopolitical risk is testing market confidence at every level.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 25 March 2026
Sources: Jefferies London prime London transaction analysis
Related reading: Third of landlords sell up as RRA triggers regional supply squeeze
