Earlier today, Beatrice Hodgkin, Editor, House & Home; Nathan Brooker, Editor, FT Money; Anthony Payne, CEO, LonRes; Oliver Custance Baker, Head of Country Department, Strutt & Parker; and Amella Greene, UK Head of Residential Lettings, Savills came together for the FT’s Annual Property Panel to discuss the forces shaping the Prime Central London property – sales and lettings markets and the wider country market.  

A central theme of the discussion was the continued shift in buyer profile across Prime Central London (PCL).

There was broad consensus on the growing prevalence of US buyers in Prime Central London, – and the country – while demand from the Middle East has softened. At the same time, interest in Middle Eastern markets from the UK, particularly Dubai, continues to accelerate. This dynamic sits alongside the well documented decline in Russian demand for the PCL market in recent years.

Importantly, the shift in buyer profile is not purely geographic.

Transaction activity across the London property market is increasingly being driven by owner-occupiers, while buy-to let-investment remains comparatively muted. This is a trend LonRes has been tracking closely through both data and LonRes subscriber insight. In our LonRes agent survey, held last Autumn, LonRes subscriber highlighted the continued dominance of needs-based buyers, with investment-led activity yet to return to previous levels. This reinforces what we are seeing in transactional data across Prime Central London.

How Buyer Profile Is Reshaping the Prime Central London Property Market

One of the clearest takeaways from the panel was how directly these shifts are influencing micro markets within PCL, as well as further afield.

Knightsbridge, once a stronghold of Middle Eastern demand, is now among the more challenging markets in Prime Central London. In contrast, areas traditionally favoured by American buyers, such as Notting Hill, are showing greater resilience, with its propensity for more lateral, wide fronted, family homes. 

Further afield, in markets such as the Cotswolds, American interest continues to underpin international activity. The discussion made clear that as global capital flows adjust, performance varies not just between cities, but between postcodes.

For agents operating in the London prime market, this level of nuance is critical. Understanding pricing trends alone is just one piece of the puzzle. The composition, motivation and origin of buyers are increasingly central for advising clients with confidence.

Rental Reform and the Outlook for UK Residential Lettings

The upcoming Rental Reform Act and its anticipated impact on the UK residential lettings market were also discussed.

Panel members noted expectations of higher advertised rents, as some landlords seek to avoid effectively setting a ceiling on their properties’ earning potential, with landlords expressing frustration around restrictions on competitive pricing mechanisms within the lettings process.

In addition, there is apparent anxiety among landlords regarding the proposed abolition of Section 21 notices. Concerns centre on regaining possession and the risk of being unable to reoccupy properties if circumstances change.

The prevailing advice from the panel was to take a long term view. In an evolving regulatory landscape, relationship building with tenants and a professional, well advised approach to lettings strategy are becoming increasingly important.

A More Nuanced London Prime Market

The discussion reinforced a clear message. The Prime Central London property market is not defined by a single narrative. It is shaped by shifting global demand, evolving domestic regulation and the wider financial and political landscape. As ever, LonRes data will continue to track these movements across the London property market, providing members with the insight needed to navigate an increasingly nuanced prime landscape with clarity and confidence.

We are grateful to the Financial Times for the invitation to contribute to this year’s panel and to share insight from the LonRes platform with the wider industry.