London luxury apartment sales above £5m fall 80% since 2023, Beauchamp Estates says
The agency says sales of new-build flats fell 87%, while the average price of £3,038 per sq ft between 2022 and 2026 has barely moved.
Sales of London apartments priced above £5m have fallen 80% since 2023, according to a report from Beauchamp Estates. The agency says new-build flats and penthouses fell further, by 87%.
Its Luxury Apartment Sales in London report covers deals between January 2022 and September 2026. Buyers bought 369 apartments worth £3.8bn in 2023 and 204 worth £1.8bn in 2025. In the first nine months of 2026, 72 changed hands for £692.9m. That figure covers three quarters of a year, not a full 12 months.
New-build sales went from 208 apartments worth £2.56bn in 2023 to 86 worth £968.8m in 2025. In the first nine months of 2026, 28 sold for £322m.
Beauchamp Estates blames planning constraints, less development finance and higher construction costs for limiting supply. It also cites tax changes and the departure of wealthy non-domiciled residents. It says private-sector housing starts in London are down 84% since 2015, with 5,547 starts last year against 33,782 in 2015.
The agency says wealthy buyers have turned towards houses. In the first half of 2026 there were 24 house purchases above £15m and eight apartment deals at that level. It links this to a preference for freehold ownership, private gardens and lower running costs. Service charges in ultra-prime buildings now come to between £18 and £22 per sq ft a year, it says.
Prices have held up. The average achieved price from 2022 to 2026 was £3,038 per sq ft, and the average transaction was just under £10m. Second-hand flats usually made £2,000 to £2,500 per sq ft, while refurbished Mayfair properties reached £3,600. Hotel-linked buildings, including The OWO Residences by Raffles and 20 Grosvenor Square, made £5,000 to £7,500 per sq ft.
Grosvenor Square in Mayfair had the highest total value of any address, at £1.26bn across 97 sales, with a top sale of £75m. Knightsbridge followed with £609.1m across 40 deals, and Queensway in Bayswater recorded £531.2m across 52. Kensington had the most sales of any district, at 257. Jeremy Gee, managing director of Beauchamp Estates, said planning constraints, reduced funding and rising costs have hampered viability.
