London continues to attract families who want a pied-à-terre or a principal address close to schools, culture and international connections. The market is mature, with a strong tradition of private sales, and the tax framework has become more demanding in recent years.
Prime districts
Mayfair, Knightsbridge, Belgravia, Kensington, Holland Park and St John’s Wood are the traditional reference points, each with a distinct character. Hampstead and parts of Richmond appeal to buyers who prefer space and greenery. Freehold or leasehold, garden access and the quality of the building matter as much as the postcode.
Stamp duty and surcharges
Stamp Duty Land Tax is charged by slices, rising to 12% on any amount above GBP 1.5 million. Buyers who are not UK resident usually pay a 2% surcharge, and buyers of additional residential properties pay a further 5% on top of standard rates, so that both can combine for a 7% surcharge in some cases (Simmons & Simmons).
The high value council tax surcharge
From April 2028, owners of homes in England valued at GBP 2 million or more are set to pay an annual surcharge from GBP 2,500 to GBP 7,500, depending on value, on top of council tax. According to Charles Russell Speechlys, it is being legislated in the Finance Bill 2026-27. It is modest relative to prime values, but it belongs in any holding-cost calculation.
Buying with discretion
Many prime homes in London are offered privately before any public marketing. I work with trusted local advisers to identify them and to coordinate legal and tax advice. See my Real Estate page, or Contact Vincent.
This article is general information, not tax or legal advice. Rules change, so confirm them with your own advisers before committing.