Prime London Market Update Summer 2026

In prime London, yes. The LonRes Prime London Sales Index recorded a 7.5% annual fall in achieved prices in Q2 2026 — the largest drop since 2009 — with prime central London down 9.0%. High stock levels and frequent price reductions are giving buyers more choice and more negotiating power.

Supply and sentiment. Available homes for sale are up 64.7% on the end of 2019, every month of 2026 has seen over 50% more price reductions than the long‑term average, and renewed speculation about property tax changes is making discretionary buyers and sellers pause. The report unpacks each driver in detail.

Across prime London, sellers accepted an average discount to asking price of 10.4% in the first half of 2026, up from 8.3% a year earlier. In the £5m+ super prime market the average discount is larger still, at 13.0%. Average time on the market rose to 186 days.

The Act came into force on 1 May 2026 and, among other changes, ends letting above the advertised rent. It’s early days, but landlord and tenant behaviour is already shifting. Notably, tenancies over £100,000 a year are exempt — and almost 1 in 8 prime London lets in 2026 fall above that threshold. The report maps this exposure area by area.

Nothing is confirmed. The new Prime Minister has ruled out scrapping stamp duty this year, but proposals such as a proportional property tax — a flat 0.48% annual levy replacing stamp duty and council tax — are reportedly under consideration. The report examines what each scenario could mean for prime London homeowners.

Forward indicators are mixed: properties going under offer rose 9.0% year‑on‑year in Q2, pointing to improving future activity, but tax uncertainty is weighing on commitment. As Nick Gregori, Head of Research, puts it: “The market can better adapt to changes when it is functioning strongly, which is not the case right now.”