The power couple had fans excited with the news that they could be moving to the English capital, after having paid £5.5million for a detached property in Mayfair.
They are understood to have exchanged on the spot around four weeks ago.
Beyoncé and Jay Z have bought a lavish house in Mayfair
"Both Jay and Beyoncé are Anglophiles and have been toying with the idea of getting a pad for a couple of years now," an insider told The Mirror.
"On previous trips, they have stayed in five star hotels and, on one occasion, a rented mansion. While money isn't an issue, it makes sense for them to have a more permanent base and get to know one particular area."
Beyoncé, 32, and Jay Z, 44, are said to have scoured the stunning Cotswolds area too, but eventually settled for a central London house.
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The 'Anglophile' power couple plan to spend more time in the UK
The Drunk in Love couple, who travelled around the UK earlier this year as part of Beyoncé's Mrs Carter Show world tour, will be returning back to England soon, added the source.
Last week it was rumoured that Beyoncé and Jay Z would be starring in a joint tour that would start in New York and come over to the UK in the autumn. The parents-of-one are said to be doing a mini tour of the UK, and having a London base would make things easier.
The news that Beyoncé and Jay Z could be moving to the capital comes just days after the rapper was reportedly at the centre of an extortion case, according to TMZ.
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Beyoncé and the couple's two-year-old daughter Blue Ivy
One of Jay Z's former producers, Chauncey Mahan, was questioned by police on Friday for allegedly attempting to extort a £59,000 "storage fee" from the singer, in exchange for holding onto some of Jay Z's master tapes. The tapes had been made between 1998 and 2002 and provided the foundations for some of the rapper's hits from his 1999 album and 2000 albums.
Chauncey contacted Live Nation, Jay Z’s joint venture with his label, Roc-A-Fella records, saying that he would auction the recordings. He agreed to a deal of £44,000 in exchange, but on the same day the former producer was taken in by police.