Prime London Market Dashboard: May 2026
Overview
Activity rises in April for prime London sales, but the market remains uncertain
The prime London sales market recorded a slight improvement in April after a slow first quarter. Transactions were higher than the same month last year and broadly in line with the long-term average for April, but other metrics continued to reflect the uncertain market conditions — both withdrawals and price reductions were high. In the prime lettings market, rents fell on an annual basis while activity increased.
Monthly prime data
| Prime Sales Annual Change |
Prime Sales Change vs. 2017–19* |
Prime Lettings** Annual Change |
Prime Lettings** Change vs. 2017–19* |
|
|---|---|---|---|---|
| Achieved prices/rents | -5.5% | -5.6% | -1.0% | 31.0% |
| Properties sold/let | 2.1% | -3.1% | 19.2% | -37.4% |
| New instructions | -1.8% | 27.4% | 31.4% | -39.0% |
All price and rent figures based on £ per sq. ft. values | *Pre-pandemic | **Excludes Prime Fringe | Source: LonRes
Key headlines
- Average achieved sold prices fell by 5.5% on an annual basis in April. Compared to 2017–2019 (pre-pandemic) levels, values were 5.6% lower.
- There were 2.1% more sales transactions in April than a year earlier but 3.1% fewer than the 2017–2019 (pre-pandemic) April average.
- New sales instructions in April were 1.8% lower than last year but 27.4% higher than the 2017–2019 (pre-pandemic) April average. The stock of available homes for sale at the end of April was 8.6% higher than a year earlier.
- Transactions in the £5m+ market were 6.3% lower in April than the same month last year. New instructions in this market increased by 1.1% over the same period. The number of £5m+ homes available for sale grew by 4.3% over the 12 months to the end of April.
- Average rental values across prime London fell by 1.0% in April on an annual basis, while average rents are 31.0% above their 2017–2019 (pre-pandemic) average.
- LonRes data for April indicated an annual increase of 19.2% in lets agreed and a 31.4% rise in new instructions. The stock of available rental properties increased by 17.5% over the year.
Prime London sales market activity shows signs of improvement in April
After a slow start to 2026, April saw some improvement in the prime London sales market, though overall it remains in a relatively weak position. Transactions were higher than the same month last year and broadly in line with the long-term average for April, but values are still under pressure.
There were 2.1% more transactions in April than the same month a year ago, but 3.1% fewer than the 2017–2019 (pre-pandemic) April average. The annual rise is the first for six months but partly reflects low activity in April 2025 when sales were brought forward to March to benefit from the final month of the stamp duty holiday.
Under offer numbers continued to indicate reasonable demand, being 7.7% higher than a year ago and 20.8% above the 2017–2019 (pre-pandemic) April average. New instructions fell by 1.8% in April compared to the same month last year but were 27.4% above the 2017–2019 April average.
The number of properties withdrawn from sale was significantly above the usual level for the time of year in April. This figure rose by 58.9% on an annual basis and was 44.5% above the 2017–2019 (pre-pandemic) April average. Despite this, stock on the market across prime London remains high, and was 8.6% higher at the end of April than at the same point last year.
Sales Activity Measures in April 2026, All Prime London
Source: LonRes
Price reductions reach record highs as vendors compete for buyers
Average achieved prices across all prime London fell by 5.5% on an annual basis in April. While this annual figure does not appear positive, the monthly April figure showed a small increase compared to February and March. It is possible that this result signals values bottoming out, with the market now adjusted to the more uncertain environment and likely higher borrowing costs. However, the amount of stock for sale and the ongoing level of price reductions may mean that there is further to fall.
The number of price reductions increased by 19.4% on an annual basis. All four months so far this year have seen the highest ever number of reductions for that month, highlighting the level of competition amongst vendors. 2025 saw the highest number of price reductions in a single year and the year-to-date figure for 2026 so far is 20.4% above that.
Of all the properties sold so far in 2026, 54.0% did so after seeing at least one asking price reduction. The highest previous figure for a full calendar year on this metric is 52.0%, recorded in 2018. The average discount from initial asking price was 10.6% in April — the highest level for seven years.
Proportion of Sold Properties Requiring At Least One Price Reduction, by Year
Source: LonRes | 2026 figure is year-to-date
Super prime market settles into new conditions
Most £5m+ market metrics saw limited change in April, lending weight to the idea that the market is settling down after the upheaval of late 2025 and the first quarter of 2026.
£5m+ transaction volumes in April were 6.3% lower than the same month last year but 57.9% higher than the 2017–2019 April average. Under offer numbers rose by 4.5% compared with last April and were 50.0% higher than the 2017–2019 April average. New instructions in April recorded a 1.1% fall compared to a year earlier but were 81.2% higher than the 2017–2019 April average.
Like the wider market, withdrawals were the only metric to record significant annual change, up 60.0% on last year. At the end of April there were 4.3% more £5m+ properties on the market than at the same time last year and, while stock levels are significantly above the long-term average, the current level is around 4% below the peak reached in June 2025.
The number of price reductions increased by 1.6% on an annual basis, but this measure is already at a high level — April recorded the second highest ever number of reductions in a single month. Of all the £5m+ properties sold so far in 2026, 44.4% did so after seeing at least one asking price reduction.
£5m+ Sales Activity Measures in April 2026, All Prime London
Source: LonRes
Lettings market waits for impact of Renters' Rights Act
Rental values fell on an annual basis in April, and while activity increased compared to the low levels of 2025 it remains significantly below the longer-term average.
LonRes data for April indicated an annual increase of 19.2% in lets agreed and a 31.4% increase in new instructions. The stock of available rental properties increased on an annual basis, with 17.5% more homes on the market at the end of April than a year earlier. Note that these activity figures exclude listings in our Prime Fringe catchment as this has been impacted by a change in the way listings are collected for our new rental checker tool.
Average rental values fell by 1.0% on an annual basis in April, continuing the trend over the past 12 months of relatively small movements in either direction. This is in contrast to the rapid growth in rents seen from 2021 through to 2023, which has contributed to values being 31.0% above their 2017–2019 (pre-pandemic) average.
Rental growth has been relatively subdued since 2024, and this is true for all three of our main catchment areas. While they have mostly moved in similar patterns, for the past few months Prime Central London has underperformed, recording an annual fall of 2.6% in April.
The impact of the Renters' Rights Act on pricing remains to be seen. With bidding wars banned and rent increases more limited, one would expect asking prices to rise, but the effect on actual rents paid is less clear. So far, our data on average discounts has not shown any significant changes.
Annual Rental Growth by Area
Source: LonRes | Data to April 2026