Prime London Property Update: Tax, Gulf Buyers & the Budget 2026

Send us Fan Mail

There were two forces pulling against each other in the London market this week.

At home, the tax pressure built ahead of the Budget. A new report claims London homeowners underpay some £3.1bn a year under a council-tax system still pegged to 1991 values, reviving the case for a proportional property tax — and Labour MPs moved to close a loophole that had cut one billionaire’s bill by £18m. The direction of travel on how prime property is taxed is clear.

And yet international capital kept backing London. The National reports Gulf and Indian investors buying prime property in bulk — whole blocks rather than single flats — drawn by rising rents and a shortage of good stock, while high-value mortgage lending rises as wealthy buyers use debt as a planning tool. Against that, a record number of new-build homes now sit complete but unsold — opportunity as much as warning for prime buyers.

The thread running through it all: tax pressure at home, capital pull from abroad. Scarcity, not sentiment, sets prime London values.

To talk through where your own position sits, get in touch at londonproperty.co.uk

The London Property Podcast Hosted by Farnaz Fazaipour, londonproperty.co.uk

Independent intelligence for serious London property owners and investors.

Every episode cuts through the noise with 30 years of prime London market experience  no estate agent spin, no vested interests. Just practical insight on where the market is moving, what the legislation means for your wealth, and where the real opportunities are.

Trusted by 1,500 HNWI members across the UK and internationally.

Topics include prime and super-prime London, leasehold reform, IHT planning, rental market shifts, regeneration areas, and the tax and legal changes every serious owner needs to understand.

 #LondonProperty #PropertyInvestment #LondonRealEstate 

🔗 londonproperty.co.uk