The second quarter closed on a muted note for prime London property, with slower-paced sales and modest price movement. But beneath the surface, several indicators suggest shifting market dynamics, particularly a rise in under-offer activity and new listings. Stock levels are recovering, and while demand remains selective, buyer interest may be gaining traction across both prime sales and lettings. Performance varies significantly by price tier, with super-prime resilience contrasting mid-market softness and remarkable rental strength.
- Average prime London prices down 0.2% year-on-year in June.
- Sales volumes fell 27.1% from June 2024 and 18.4% below pre-pandemic norms.
- Properties going under offer rose 9% annually and 22.7% above pre-2020 average.
- New instructions increased 19% year-on-year and 20.1% over 2017–2019 levels.
- Super prime (£5m+) listings rose 42.9%, but sales dipped 7.7% year-on-year.
- Prime rental listings rose 22.9% with annual rents up 5.6%.
Original article source: LonRes
While the headline figures suggest a subdued second quarter, the underlying market signals are starting to turn. The rise in properties going under offer – particularly compared to pre-pandemic benchmarks – could point to a shift in buyer sentiment, especially as pricing appears to have stabilised across much of prime London.
For vendors, this means increased competition. Inventory is climbing and more listings are entering the market at realistic levels, reflected in the volume of price adjustments. This recalibration is encouraging in a market that’s been waiting for direction, particularly at a time when interest rates have edged down and geopolitical risks feel less volatile than in recent quarters.
Super prime activity may have eased slightly year-on-year, but it continues to outperform relative to its historic baseline. Listings are high, but demand above £10 million remains resilient and this segment has shown time and again that it moves differently to the broader market. For long-term investors, that distinction matters.
Meanwhile, the prime lettings market continues to benefit from improving supply, even as rental growth holds firm. This provides much-needed relief for tenants while maintaining yield strength for landlords, a rare win on both sides of the equation. In some cases, stock is flowing across from the sales market, offering further evidence of sellers re-evaluating their timelines or strategies.
As we move through the second half of 2025, the mix of softening prices, growing choice, and steady demand is creating space for more confident, strategic decision-making. For those with clarity of purpose – whether buying, selling or letting – the market is starting to listen again.
