- Sales of London homes worth more than £15 million rose 79 per cent in value during the first half of 2026.
- Buyers from the US and the Gulf accounted for 55 per cent of ultra-prime property purchases.
- Analysts suggest geopolitical tensions and growing tech wealth are helping drive demand.
London's luxury property market is attracting wealthy overseas buyers once again, despite recent tax changes that prompted many high-net-worth individuals to leave the UK. Fresh data suggests buyers from the US and the Gulf are increasingly viewing prime London real estate as a place to preserve wealth amid global uncertainty.
According to research by Beauchamp Estates, 34 homes worth more than £15 million changed hands between January and June, with a combined value of £1.24 billion. That represents a 79 per cent increase in sales value compared with the same period in 2025, when 27 properties worth £694.1 million were sold.
Global events reshape London's luxury market
The increase was driven largely by overseas buyers.
Americans accounted for 30 per cent of all ultra-prime purchases during the first six months of 2026, up from 20 per cent at the end of 2025. Buyers from the Gulf made up another 25 per cent, meaning the two groups together were responsible for more than half of all transactions in London's £15 million-plus market.
Beauchamp Estates estimates these buyers spent around £682 million on luxury homes over the six-month period.
The agency attributes the trend to two developments. The first is the continued creation of wealth in the US, particularly from the booming AI and technology sectors. The second is heightened geopolitical uncertainty in the Middle East following the US-Iran-Israel conflict, which estate agents suggest has encouraged some Gulf investors to move capital into London property.
Jeremy Gee, managing director at Beauchamp Estates, reportedly said, as quoted in a news report, that London's ultra-prime housing market had rebounded strongly during 2026, with American and Middle Eastern buyers accounting for 55 per cent of all sales.
He added that demand from US buyers had been fuelled by the country's strong economy and expanding AI sector, while geopolitical tensions in the Middle East had encouraged more Gulf investors to purchase property in London.
Rosy Khalastchy, a director at Beauchamp Estates, reportedly said the firm had seen a rise in American buyers looking to move part of their wealth into London property, alongside growing interest from Gulf clients seeking homes to buy or rent since early 2026.
A recovery, but not a full comeback
Despite the sharp year-on-year increase, London's luxury housing market has not fully returned to previous levels.
There were 46 ultra-prime transactions during the first half of 2024, compared with 34 in the same period this year. The market also continues to adjust following the abolition of the UK's non-dom tax regime in April 2025, which prompted many wealthy residents to sell expensive homes or relocate overseas.
The average sale price climbed to £36.5 million, up from £25.7 million a year earlier. Much of the increase was driven by several landmark transactions, including the £275 million sale of Providence House in Chelsea and the £195 million sale of The Holme in Regent's Park.
Belgravia recorded the highest number of ultra-prime sales, with nine transactions, followed by St John's Wood and Chelsea, which each recorded five.
Several high-profile buyers have also emerged. Abbas Sajwani, a Dubai property developer, purchased The Holme in Regent's Park for £195 million, while reports linked xAI co-founder Igor Babuschkin to a £57 million penthouse in Bayswater, although he later denied completing the purchase.
The figures suggest London's luxury property market is entering a new phase. Rather than relying on domestic demand, its recovery appears to be increasingly shaped by international wealth, with global politics, technology fortunes and investment strategies becoming as influential as the city's property fundamentals themselves.
