Savills' latest prime index, reported on 12 October 2026, shows prime values still easing, with research director Frances McDonald describing £2 million as "an important psychological as well as financial dividing line for buyers". If you own, or plan to buy, a home near that level, here is what it means in plain terms.
What the latest prime figures show
- Prime central London: down 1.5% in the third quarter and 4.8% over the year, now 27% below the 2014 peak (Savills, via Estate Agent Today, 12 October 2026).
- Outer prime London: down 1.1% on the quarter and 3.0% on the year. Homes worth £2m or more fell 2.5% over the year, against 1.3% for homes under £1m.
- Prime regional markets: down 1.5% on the quarter and 4.1% on the year, with higher-value homes down 5.5%.
Savills says activity in central London has kept a steady pace, helped by cash buyers and those less exposed to higher borrowing costs. In the country market, agents report that sales are taking longer to progress.
Why £2m matters: the High Value Council Tax Surcharge
From April 2028, owners of homes in England valued at £2 million or more are due to pay a new annual surcharge on top of council tax. According to the House of Commons Library, it starts at £2,500 a year and rises to £7,500 a year for homes valued above £5 million. The government consulted between May and July 2026 and plans to legislate in a future Finance Bill, so the detail could still change.
For buyers, that makes a price just above or just below £2m a real negotiating point. For owners, it is a cost to build into your budget and, for some, into the affordability picture a lender will look at.
What it means for high-value borrowers
Softer prices can open doors for buyers who are ready, but large loans are assessed in detail. Lenders and private banks will look closely at bonus and variable income, overseas earnings, assets held, interest-only repayment plans and the property itself. A falling or uncertain valuation can also affect the loan-to-value you are offered. Some private banks may consider a wider relationship, such as assets under management, as part of the lending decision.
Quick tips
- Get a decision in principle before you negotiate, so you can move quickly and with confidence.
- Gather two to three years of income evidence early, including bonuses, dividends and any overseas income.
- If your home is close to £2m, factor the planned surcharge into your long-term running costs.
- If you are remortgaging, allow for a valuation that may come in lower than you expect.
- Compare high-street lenders and private banks: the right fit depends on your income, assets and plans.
Our CeMAP-qualified advisers work with high-value and private bank lenders every week. Read our free million-pound-plus mortgages guide, see how we helped a Hampstead buyer with bonus income, or explore our high-value mortgage and private bank mortgage pages.
Sources
- Estate Agent Today: Some prime house prices now 27% below peak, admits Savills (12 October 2026)
- House of Commons Library: High Value Council Tax Surcharge (updated 18 October 2026)
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.