Report and Podcast overview

The LonRes Prime London Market Update for Winter 2025/26 is now available. This latest edition brings together LonRes data up to the end of December 2025, exploring how the prime London sales and lettings markets performed over the year and how different local markets have fared.

Alongside a comprehensive overview of market activity, this edition includes a detailed 2025 Local Market Review, comparing achieved prices and rents across prime London neighbourhoods to highlight areas of relative strength and weakness.

What’s covered in this update:

Sales market

• Sales activity slowed towards the end of 2025, with transactions in Q4 down 18.1% year-on-year and total transactions for the year 8.1% lower than in 2024.

• Stock levels remained elevated for much of the year, with the number of homes for sale across prime London ending 2025 10.3% higher than a year earlier, despite a rise in withdrawals in Q4.

• Price pressures persisted, with the LonRes Prime London Sales Index recording an annual fall of 2.7% in Q4 and average discounts to asking price widening to 9.0% in 2025.

• The 2025 Local Market Review highlights notable variation across neighbourhoods, with Mayfair & St James’s recording both the highest average achieved sale price per sq ft (£2,445) and the strongest annual growth, while Hampstead saw the largest ten-year increase in values.

Lettings market

• Lettings activity strengthened in the second half of the year, with lets agreed rising by 14.7% in Q4 and finishing 2025 slightly higher overall than in 2024.

• Rental growth slowed as supply improved, with the first annual fall in prime London rents since 2021 recorded in Q4, although average rents remain almost 30% above pre-pandemic levels.

• Availability increased through the year, with 37.2% more homes available to rent at the end of 2025 than a year earlier, though stock remains well below long-term norms.

• The Local Market Review shows significant variation in rental performance, with Knightsbridge & Belgravia recording the highest average weekly rent in 2025 and Bayswater & Maida Vale seeing the strongest annual rental growth.

Download the full Prime London Market Update for Winter 2025/26 and listen to the AI podcast version below.