London Prime Property Market: Q2 2025 — Prices Up, Urgency Down
London’s prime market delivered a nuanced Q2: headline prices moved higher, yet sales activity remained subdued and buyers continued to negotiate. At the top end, super-prime deals persisted — but at steeper discounts — while a surge in listings is testing the market’s capacity to absorb new stock.
Pricing: Outer Prime Leads, Central Value Persists
Outer-prime areas — notably Hammersmith & Chiswick, and Wimbledon/Richmond/Putney/Barnes — drove quarterly gains. Meanwhile, pockets of prime central still offer value relative to peak levels, with Knightsbridge & Belgravia more than 20% below peak and Chelsea 17.2% below.
Buyer Power: Negotiations Remain Central
Buyers are still negotiating firmly, averaging an 8.7% discount. Central London shows the largest concessions (c. 17.7% in Mayfair & St James’s; 12.5% in Knightsbridge & Belgravia), while competition suppresses discounts in outer-prime (c. 2.1% in Battersea/Clapham/Wandsworth; 4.5% in Wimbledon/Richmond/Putney/Barnes).
Short-/medium-term investors face stamp duty up to 19%, nudging many toward renting. Higher-budget buyers tend to operate on 10-year horizons, supporting selective demand despite fiscal headwinds.
Activity & Liquidity: The Urgency Isn’t There
Transactions fell 15.5% year-on-year and sit 9.7% below the 10-year average. Just 826 properties were under offer at the end of Q2 — the lowest spring market reading since 2021 — underscoring a buyer-seller stalemate.
Supply Surge: A New Test for Pricing
Stock on the open market is 11% higher than a year ago, and new Q2 listings are 40% above the 10-year average. Drivers include landlords exiting ahead of the Renters’ Rights Bill, higher council tax on second homes, and delayed selling plans returning post-election/budget.
Super-Prime: Resilient but Highly Negotiated
£10m+ sales remain 10% above the 10-year average, concentrated in Knightsbridge & Belgravia and Mayfair & St James’s. However, the average discount around 19.5% reflects disciplined, value-driven bidding at the top end.
Guidance for Sellers & Buyers
- Price for today’s market. Benchmark against live, competing stock and recent negotiated outcomes — not just last quarter’s uplifts.
- Pre-market preparation pays. Presentation, photography, and collateral sharpen differentiation as supply rises.
- Expect negotiation. Build realistic concession ranges into your strategy; move decisively when serious buyers emerge.
- Targeted micro-market strategy. Outer-prime momentum vs. prime-central value requires postcode-level tactics.
- For buyers: Focus on quality and fundamentals; be ready to act in competitive outer-prime, and negotiate thoughtfully in central value zones.
Thinking of selling or acquiring in London prime?
Blackmore Global advises across prime and super-prime London — from pricing and presentation to negotiation and deal management. Get in touch for a confidential discussion and a postcode-level briefing tailored to your goals.
