Seven trends that will shape prime central London in 2026
Prime central London is set to regain momentum in 2026 as it shrugs off the tax speculation that dampened activity ahead of the Budget.
Our research already points to a post-Budget bounce, with a 173% jump in the number of homes hitting the market across the UK between 26 November and 5 December 2025, compared with the same period in 2024. This activity is expected to continue into 2026 as confidence improves.
On the global stage, London continues to offer excellent value, underpinned by world-class education, culture, connectivity, and business opportunities. Many international buyers remain undeterred by recent tax measures affecting the higher end of the market.
Claire Reynolds, UK Head of Sales, says: “With greater stability and clarity following the Budget, we expect buyer demand in prime central London to strengthen in 2026. Softer pricing compared with the past decade is adding to the appeal, whether it's buying for personal use or for investment. We anticipate a more positive outlook and higher transaction volumes in the year ahead.”
Here are 7 trends that are set to shape the prime central London housing market in 2026.
1. Super-prime territory set to expand
Ultra-high net worth buyers are expected to look beyond traditional super-prime enclaves.
According to Claire, ultra-high net worth buyers are increasingly balancing location with lifestyle. And demand is rising in areas such as Hampstead, Fulham, and St John’s Wood, fuelled by a wave of new high-end amenities.
“One example is Fulham, where the redevelopment of Fulham Football Club to include a new private member’s club and hotel is helping to attract buyers who might previously have focused on Chelsea or Notting Hill,” she says.
Super-prime residential developments with all the bells and whistles, such as concierge services, wellness centres, and carefully curated residents’ spaces, are set to excel, helping to put new areas on the super-prime map.
Claire explains: “In St John’s Wood, the barracks are being redeveloped into a super prime development. By offering the amenities typically associated with prime central London schemes, it enables a shift away from traditional super-prime locations.”
2. Neighbourhoods with a village lifestyle will stand out
Thriving neighbourhoods are expected to feature prominently on buyers’ wish lists. Areas that are home to top-rated schools, independent shops, cafés, green spaces, good transport links, and a strong sense of community will be highly sought-after.
“Neighbourhoods have become increasingly important to buyers since the pandemic. While more people are returning to the office, lifestyle remains a clear priority,” explains Claire.
“This is reflected in the growing appeal of areas that provide a wonderful village lifestyle within the capital. Areas such as Notting Hill, Marylebone, Fulham, and Barnes offer a strong sense of community, with a wide range of amenities on the doorstep.”
3. Pied-à-terres will make a comeback
Pied-à-terres are poised for a resurgence in 2026, having largely fallen out of favour during the pandemic. In a clear vote of confidence in the prime central London market, international buyer appetite for pied-à-terres is expected to increase further.
Claire explains: “Some of these buyers have relocated from the UK and want to retain a foothold in the London market, while others are seeking a London base either for themselves or for children studying in the capital.”
There’s also a growing cohort of buyers who need a pied-à-terre during the working week, as return-to-office mandates become more widespread.
4. Future-proofed homes will be highly sought-after
With affordability pressures and the cost of moving squeezing budgets, buyers are expected to prioritise homes that offer longevity in 2026.
For some buyers, this could mean opting for a larger property they can grow into in a more affordable location, rather than a home that suits their needs now in a more central part of London.
Homes with flexible layouts and adaptable spaces that can evolve with changing needs are likely to be in hot demand.
Claire explains: “People are stretching themselves to buy a home that not only works for the ‘here and now’ but can also accommodate future lifestyle changes.”
5. Renters’ Rights Act will dominate lettings landscape
The Renters’ Rights Act will be a major focus for landlords in 2026. The legislation, which comes into force for both new and existing tenancy agreements on 1 May 2026, will have far-reaching implications across three core areas: rent, length of occupation, and increased regulation.
Anna Ambrose, National Head of Lettings, says: “The Renters’ Rights Act has come into sharp focus since the Budget. Many landlords - particularly larger-scale ones - are considering their strategies. They're reviewing their portfolios for the next 12 to 18 months and ensuring compliance is fully up-to-date and well-managed.
“This has been a key trend in the lettings market and is set to remain so into the first half of 2026.”
Despite the legislative changes, Anna does not anticipate a significant increase in landlords exiting the market in 2026. “Many landlords who weren't geared up for the changes have sold their properties. Those who remain are, in my experience, well prepared and committed to staying in the market,” she says.
6. Demand for managed lettings set to strengthen
Agents are set to play a pivotal role helping landlords deal with major regulatory changes on the horizon.
The Renters’ Rights Act will have wide-ranging implications, while tighter energy efficiency regulations are expected to require rental homes to have an EPC rating of C or above by 2030.
“With landlords navigating an increasingly complex legislative landscape, agents are well placed to add real value for their clients,” says Anna.
“From a tenant's perspective, there's also a certain comfort in knowing that their letting is being managed professionally and appropriately.”
7. More would-be vendors will turn to lettings market
More discretionary vendors are expected to let their properties in 2026.
Super-prime lettings will continue to be a popular and viable option for vendors who prefer to wait for a more favourable point in the housing cycle to put their homes on the market.
Anna explains: “With prime central London prices below historic highs, many vendors — unless compelled to sell — will choose to let their homes instead.
“This brings high quality stock to the lettings market. In our experience, owner-occupied homes generally command bigger premiums than investment flats.”
Landlords are also set to benefit from a pool of longer-term tenants: Anna notes that a shortage of homes for rent in prime central London is likely to encourage more tenants to extend their existing tenancies in 2026.
Discover the trends set to impact the regional market in 2026 here.