Market Insights August 2025

We hope you’ve had an enjoyable summer. Below we outline the key themes we’re seeing in the prime central London property market this month, as we head into September.

If you have any questions about the market or would like to discuss the below in more detail, please don’t hesitate to reach out.

Best wishes

Jo Eccles

Founder and Managing Director, Eccord

+44 (0) 20 7244 4482

jo.eccles@eccord.com

LinkedIn | Instagram

Tax change speculation

Recent weeks have brought a flurry of speculation about reforms to UK property taxes, causing uncertainty for buyers as the Autumn Budget approaches.

One idea reportedly under consideration is to replace stamp duty with an annual property tax on primary residences worth over £500,000, charged at 0.54% between £500,000 and £1 million, rising to 0.81% over £1 million. It is understood that the annual tax would only apply to newly transacted properties above that threshold, and existing stamp duty surcharges for second homes and overseas buyers would remain in place. 

This means for someone buying a £2 million property, the £153,750 stamp duty charge would be replaced by an annual tax of £12,150, while for a £5 million property, £513,750 stamp duty would be replaced by £36,450 a year. Whether buyers would be better or worse off would depend on how long they owned the property - in these two examples the tipping points would be 12.7 years and 14.1 years of ownership respectively. 

If this proposal did come into effect, it could encourage the return of the 3 to 5 year purchase, with people once again moving up and down the ladder with each life stage, in contrast to the minimum 7 to 10 year timeline buyers have adopted in recent years in order to justify the stamp duty cost.

The second idea being floated is to remove the existing capital gains tax exemption for primary residences worth over £1.5 million. Considering most owners in London have not made any gains in the last decade, and buying costs, stamp duty and refurbishment expenditure are all deductible, in reality many sellers would be unaffected. Those who have owned London properties for much longer periods - often downsizers - would be affected, however, making them less likely to transact.

None of our current clients are changing plans and they are pressing ahead as expected. But the speculation adds to uncertainty in the market and HNW and UHNW frustration that the government appears to be more focused on increasing the tax burden on wealthy and hardworking people, than creating opportunity for growth and prosperity.

Buyers are seeing value and committing

Despite uncertainty, buyers are seeing sufficient value to commit to property purchases. Whilst the market remains difficult for buyers to navigate with confidence, they have been enticed by greater choice and more realistic pricing. Quality remains mixed and many of the best homes still carry unrealistic price tags, but fatigued sellers are increasingly motivated to transact, with 80% of them selling at a loss.

Our property search team have been busier than anticipated throughout the summer this year as a result, securing client purchases from £2.6 million to £13.9 million. New buyer enquiries for September are strong, including domestic buyers moving out of rental homes, upsizing following wealth events, or purchasing pied a terres - and international buyers purchasing London bases for themselves, or full time homes as part of a relocation here. 

It’s worth noting that sellers remain incredibly sensitive and buyers lowballing offers or those who are insensitive or tactless in their approach, are achieving little success.

We saw this recently with a buyer who was particularly frustrated and couldn’t understand why he had lost out on a rare lateral £5 million flat in Chelsea because he had offered more than the successful buyer. When he asked for our help, the underlying issue became clear. He arrived late to our meeting, came across as arrogant and was dismissive of our guidance. 

For most sellers, the overriding priority is to avoid the risk of their sale falling through and having to start again, or a buyer chipping the price at the last minute. They want a credible, reliable, buyer who will give them a smooth, guaranteed sale – and those who can demonstrate they are a ‘safe bet’ are at a significant advantage.

American demand shows no sign of slowing

The first quarter of this year saw the highest number of British citizenship applications from Americans relocating to the UK in twenty years, and I shared our insights with The Wall Street Journal and Spear’s Magazine into the factors driving this trend.

While currency advantages have softened in recent months, we are continuing to work with new American clients arriving to London imminently, or in the next 1 – 2 years. For example, one tech entrepreneur is buying a ‘back up’ home for £5m - £10m which they will use as a London holiday base, but will move into full time “if Trump runs for a third term”.

Besides politics, work life balance and the absence of gun crime, alongside the UK’s world-class schools, are a powerful draw. Many UK schools are reporting record website hits and interest levels from Americans, and this October (4th – 9th) I will be in New York co-hosting an event for American families considering educating their children in the UK.

Heads from Eton, Wycombe Abbey and Wellington College will join us, providing a unique opportunity for a fireside chat with them discussing UK education and the opportunities it provides.

If you this is of interest to you, or to contacts or clients of yours, please get in touch or feel free to register: Event details Monday 6th October