An Overview of the Current Art Market

The art market in London is currently facing an uncertain climate. According to Kabir Jhala, art market editor at a prominent art newspaper, the market is experiencing a sharp decline in top sales and a weaker decline in most other price points. This decline is attributed to more restrained spending by collectors, who are buying less than before and keeping trophy works off the market.

The Impact of Conservatism on the Art Market

The impact of this conservatism is exacerbated by the rising operating costs that galleries face, regardless of their positioning. This is not just a problem in the UK market, as sales in the global art market fell 12 percent in 2024, with sales in the UK alone falling 5 percent year-on-year. The ongoing impact of Brexit and the newly reported exodus of international wealth from London are also contributing factors to the decline of the art market.

Factors Affecting the UK Art Market

A particularly British factor is the ongoing impact of Brexit, which has led to the abolition of non-dom tax status and an exodus of international wealth from London. The closure of galleries such as Marlborough Gallery and Almine Rech, as well as one of Mayfair’s flagship blue chips, Hauser & Wirth, is linked to the decline of the UK economy. However, despite the gloomy mood, there seems to be cause for optimism, as the UK market has regained its status as the second largest art market in the world.

Reasons for Optimism

Although the UK market has shrunk by 15 percent compared to its pre-pandemic size, it is still 5 percent above its 2020 figure. This year, the UK also regained its status as the second largest art market in the world, thanks to poor sales in China. There is a general consensus that to get a real sense of the mood in the London arts sector, one needs to look beyond the numbers. Alongside the news of major closures, there were also announcements of significant expansions and openings – from both commercial galleries and private institutions.

Expansion and Openings in the Art Sector

Stuart Shave’s Modern Art, Maureen Paley, and Sadie Coles are among the commercial galleries that have opened ambitious spaces in central and east London’s most prestigious gallery districts. Institutions such as Ibraaz and Yan Du Projects have also opened doors via their Fitzrovia spaces, with a focus on art from the Global South and East Asia respectively. These expansions and openings suggest that there is still a strong demand for art in London, and that the sector is adapting to the changing market conditions.