Agents will instead replace the term with 'primary' or 'principal' bedroom, the Times reports.
Peter Wetherell, executive chairman of Wetherell in Mayfair, said the company was removing the term master bedroom on all of its listings in an attempt to appeal to more socially conscious buyers
He told The Times: "These changes are being driven by political correctness and dramatic transformations in the buyer demographic across prime central London.
"The typical buyers are now aged from their early twenties to their mid-forties and from all over the world.
"This young demographic tends to be very broad-minded and find any form of racism or sexism deeply offensive."
Jeremy Gee, managing director of Beauchamp Estates in Mayfair said his company would be replacing the term master bedroom for 'principal'
“In a typical week we are selling to a British couple one day, a family from Saudi Arabia, Nigeria or Hong Kong another day and a same-sex couple from Britain, France or America on another day," said Mr Gee.
“We always try to use neutral and non-offensive marketing terms. Using ‘his’ and ‘her’ bathrooms would be incorrect if we are marketing to a same-sex couple, for instance.”
Marc von Grundherr, director of Benham and Reeves estate agents in London, echoed Mr Gee's comments about selling to international clients.
He said: “We are used to dealing with sensitivities concerning different races and cultures. The word master does carry historically racist undertones.
“If it were to cause offence to any buyer, seller or tenant, we wouldn’t have a second thought in amending our advertising material to remove it.
“It is something we are considering doing to prevent such offences occurring.”
It comes as estate agents in the US are also opting to ditch the term master bedroom in favour of more inclusive terminology.
The Houston Association of Realtors (HAR) said it will no longer use the term "master" as some of its members viewed the term racist and sexist.
In a statement to CBS News, HAR said: "The overarching message was that some members were concerned about how the terms might be perceived by some other agents and consumers.
"Based on the discussion that took place, more members viewed the terms as sexist than racist, although some did view them as racist."
According to HAR the term master does not violate Fair Housing laws and therefore it will not ban realtors from using the term and it can still be used in marketing and photo descriptions.
"The origin of the terms is debated, and we are not saying they are rooted in slavery," said HAR.
"Others didn't personally view them as sexist or racist but believed we should change the terms for anyone else who might find them objectionable.
"The consensus was that Primary describes the rooms equally as well as Master while avoiding any possible misperceptions."
Terms such as master, slave, whitelist and grandfathered will be swapped for more inclusive terminology.
US bank JP Morgan, software developer Github, LinkedIn divisions and Google Chromium are among the major corporations which are also making moves to update the language they use.