Unsold penthouse highlights how the ultra rich are falling out of love with London

Once it is completed later this summer, The Lucan, a block of 31 flats in Chelsea, will be one of London’s most opulent addresses – and its penthouse, priced at £19.5m, will be the jewel in the crown.

At more than 3,200 sq ft, its buyer will benefit from “signature scents”, an “in-house stylist” and “exclusive experiences like private dining and personal shopping”.

A decade ago, a “good property in a good location” would take “a matter of weeks” to sell, said Stuart Bailey, head of super-prime London sales at Knight Frank. But The Lucan’s penthouse was listed for sale in June 2024 – and has been waiting for a buyer ever since.

Once the toast of the City, over the past decade London’s super-prime market, which focuses on properties valued at more than £10m, has been hit by a raft of new rules.

In 2022, a new law forced ultra-rich buyers, who had previously enjoyed the option of hiding ownership of properties behind offshore businesses, to sign a register of beneficial ownership. Meanwhile, changes to stamp duty for overseas buyers and second home owners mean, said Lucian Cook, head of residential research at Savills, that “if you’re buying a £10m property in central London at the moment, you face a stamp duty bill of somewhere between £1.1m and £1.8m”.

The non-dom rules have been the market’s “biggest killer”, said Will Watson, head of The Buying Solution and a buying agent for the ultra-wealthy. Figures published in May show prices on London’s super-prime housing market to remain flat this year. As recently as November, it had suggested prices would rise 2% in 2025.

A U-turn would, Watson suggests, radically improve things, particularly if it came in October’s budget. “Confidence will very quickly return, demand will pick up,” he said. “It could be a very busy end of the year”.

Some millionaires have already had their heads turned away from London. As successive British governments clamped down on the ultra-wealthy over the past decade, the super-rich found a warm reception in Dubai, Milan and the South of France.

But London will always be popular for its culture, diversity and education system. If you’re rich and in search of fun, other places simply can’t compete. “I’ve got clients who’ve gone to Dubai – and hate it,” said Bailey.

Photograph by Autograph Collection Residences