Sarah Ferguson, the Duchess of York sold a Belgravia townhouse for £3.85 million. This relates to a transaction which involved experts and was rather difficult. It costs roughly €4.50 million euros. The sale indicates that the sales of ultra-prime properties in London are becoming slower in August 2025 owing to rising borrowing costs, changes in tax policy and different behaviours of buyers.
High-Profile Sale Below Purchase Price
The Duchess attended her £4.25 million home bought in 2022. According to the Sunday Times, the property was next to Eaton Mews North, one of Belgravia’s finest streets. As part of a family investment plan, she bought the property for her daughters, Princess Beatrice and Princess Eugenie.
However, sources say she sold it to the tenant now occupying the space. The seller of the house bought from a promoter. She sells her product at a price that is lower than the cost price but which allows him to make a good profit. A representative stated that the sale proceeds will go towards the asset creation of new projects. They share almost equal holding in the company. The family members should hold shares in proportion to their investments in the company.
London’s Prime Market Under Pressure
Ferguson’s move comes as property values and transaction volumes continue to contract across Prime Central London. This trend has continued to develop. As per Savills, for the past twelve-month period, prime central London’s average prices have dropped by 3.7 percent. They have decreased by 22.4% from the peak in 2014. Knight Frank, an estate agent, is foreseeing another 3.2% decline in the period until August 2025. Sales volumes have also fallen. According to LonRes, the number of overall deals was down 24% in August year-on-year. Meanwhile, super-high-end sales (sales over £5 million) were down 35%. It indicates a decrease in demand for luxury items and services.
According to a report by analysts at Knight Frank, even top-end properties in the leeward end of demand are facing a bearish situation wherein some sellers are agreeing to lower their prices.
Several factors are contributing to the slowdown. The current base rate of the Bank of England is 4.00%. The cost of borrowing has gone up a lot since 2021–2022. Buyers in the luxury segment are also postponing their purchases due to new tax rules on non-doms. The rule for foreign income and profits for 2025 and the over-taxation to consolidate at 2% for foreign buyers.
A Strategic Sale in a Changing Market
With prices cooling in the East Coast market, some visible sellers are looking to pay less, including by moving their existing tenants. It is a slightly lower final price that is still attractive for its speed and risk profile and it is an entirely voluntary deal on the part of the family.
A couple who bought a townhouse in 2022 for £4.25 million has sold it for £3.85 million. As such, they made a nominal loss of about £400,000. Such results are now common. The same location that permitted Belgravia and, in particular, Knightsbridge properties to generate comparatively quick gains a couple of years earlier, with capital gain media relatively clear over a short time window.
Key Takeaways
As the Duchess of York sells her pad, the London luxury market is shifting. Buyers are gaining power. They are asking for better prices, quicker turnaround times, and lower returns (even on the hottest addresses).
As buyers are better informed and political changes alter the investment landscape, years of swift capital appreciation in Prime Central London have certainly come to an end. Nowadays, buyer and seller need to make more strategic decision than anything else.
