Market Insights January 2026

With 2026 underway, please see below our January Market Insights outlining the key themes emerging in the prime central London property market.

If you have any questions or would like to discuss opportunities in more detail, please don’t hesitate to contact me or the team.

Best wishes

Jo Eccles

Founder and Managing Director, Eccord

+44 (0) 20 7244 4482 / +44 (0) 7740 825 875

jo.eccles@eccord.com

LinkedIn | Instagram

Buying activity started early

Pent-up demand released post-Budget has led to a busier than usual Christmas and New Year period. Rather than activity building in the third week of January, as is typically the case, we commenced several new searches unusually late, in mid-December. For one client, we carried out a first round of viewings on the 18th December and second viewings between Christmas and New Year.

Buyers remain cautious and price sensitive, but they are also now recognising value and acting with intent. Demand continues for turnkey, well-located pied-à-terres from British clients, particularly those working in finance and commodities with budgets of £3m - £10m.

International interest is returning too. These buyers are highly discretionary, and their activity is a barometer of confidence in the long-term investment and lifestyle proposition of London. New build developments have seen a spike in interest and viewing numbers as a result, with location, amenities, design quality and resident experience all central to decision-making.

Many family buyers chose to sit on the sidelines in Q4 last year due to Budget uncertainty and fears of an expensive mansion tax which didn’t materialise. With secondary school offers due in mid-February, we  are working with a number of families keen to get ahead of the curve. We are identifying the best options for them now so they are ready to make an offer as soon as school places are received - rather than starting their search at that point alongside competing families.

Credibility is key for discounts

Buyers are showing greater flexibility around budgets, supported by growth in personal wealth thanks to the strength of global equity markets and the continued rise in the value of commodities.

Seller expectations have adjusted considerably over the past six months, but there continues to be a clear divide between genuinely motivated sellers and those who remain unrealistic on pricing, often attempting to recoup what they paid for their property - and in some cases their stamp duty on top.

Last year, 80% of the properties we acquired for clients were sold for a loss relative to the price paid by sellers who bought in the last decade. Buyers are therefore advised to be mindful of this and approach negotiations strategically.

Purely opportunistic buyers who are focused on simply lowballing the market are quickly earning an unfavourable reputation for themselves - and selling agents are reluctant to prioritise them or back any offer they make as a result.

Track record and credibility therefore continue to be extremely important and valuable in securing the best discounts.

US buyers beware of the UK buy/sell divide

Demand from US buyers remains strong heading into 2026 and we’re working with Americans relocating here for jobs and schools, purchasing a London base for themselves or for children attending British boarding schools. Yet many remain unfamiliar or unaware of the UK’s clear distinction between buy and sell-side representation, resulting in them seeing a limited selection of properties and not securing the best price.

Recently, we were appointed by an East Coast-based client seeking a new build apartment in prime central London who had initially undertaken their own search. They had arrived in London focused on a particular development, but on viewing it, found the layouts didn’t work for them. The sales agent arranged viewings for them at two alternative developments, which the client assumed was simply a helpful gesture.

Following advice from a London lawyer, they decided to engage a buying agent to represent them. After appointing us, they realised that the selling agent would have secured a referral fee had they proceeded with a purchase at one of the alternative developments – an arrangement that had not been disclosed to them. This would have put them at a distinct disadvantage, having seen only a narrow segment of the market, and reduced the margin for negotiation as the selling agent would have had to share their fee with the introducer.

In the States, realtors typically act on both sides of a transaction, creating an assumption of independence that does not translate to the UK market. Understanding the distinct buy-side and sell-side representation in London is critical for overseas buyers looking to make informed decisions and ensure their best interests are represented.

For those unfamiliar with how the UK system works, we have created some short, practical guides explaining the different roles of buying and selling agents and how to navigate the process.

Turnkey remains king

Genuine turnkey properties continue to command significant premiums, as buyers prioritise immediacy and convenience, with little appetite for refurbishment. The desire to move straight in – without the uncertainty, disruption and burden of building works – is a major factor in decision-making at the top end of the market.

The planning process remains slow and a cyber-attack in November will further delay planning decisions across Westminster and Kensington & Chelsea. In addition, a number of contractors have ceased trading, with remaining contractors mopping up the business but in turn stretching their own capacity - and project completions are slipping as a result.

For those who do have a truly turnkey home, they will be rewarded for their efforts, with big premiums being paid in return. One house in St John’s Wood asking £35m has had multiple rental offers – including an eye watering £300,000 p/w for an 8 week short let from a high profile celebrity couple – but the seller is focused solely on a sale, knowing that anything less than turnkey condition will impact the price he receives.

Rise in family offices outsourcing property management

The growing complexity of residential property management is prompting many family offices to rethink whether this function is best handled in-house. Rather than viewing it as a purely operational task, more are recognising the breadth of expertise now required to do this well, and the value of outsourcing to specialist teams that can combine day-to-day oversight with strategic advice.

A number of family offices with both residential and commercial holdings have sought to consolidate property management to a firm who can manage both under a single umbrella. However, we have seen them come unstuck in some cases, as the approach and service style required to deal with the nuances and expectations of high-value properties and tenants is very different to the needs of commercial assets.

For those building up their London property holdings, strategy remains key. One international family office was keen to take advantage of stamp duty savings for buying 6 properties or more in one transaction. But their focus overlooked the quality of what they were buying and the need to clearly define their priorities in terms of income versus growth, and considering how asset values should be balanced to allow flexibility should equity need to be released over time. Guidance on strategic considerations is far more important than a short-term tax saving.