Prime London Market Update Autumn 2026
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London house prices in 2026: how is the prime London market performing?
Sales volumes across prime London fell 10.0% in the third quarter and achieved prices, the measure of London house prices that agents actually transact on, are down 4.0% over the year, though the pace of falls has slowed. Rents rose 4.0%, their fastest growth in over a year. The full report brings LonRes transaction, pricing and lettings data together with the Autumn 2026 LonRes Agent Survey.
What are the headline numbers for Q3 2026?
Source: LonRes · Q3 2026, 1 July to 30 SeptemberAchieved sale prices across prime London fell 4.0% in the year to Q3 2026, and 2.3% in prime central London. Sales volumes were 10.0% lower than a year earlier. The average discount to asking price was 10.1%, and there were 3.1% fewer homes on the market at the end of September. Rents rose 4.0% and the average gross yield reached 5.19%.
Q3 2026 activity, compared with a year earlier
One of 11 interactive charts in the full report
What is in the full report?
- IntroductionTax headwinds and geopolitics contribute to cautious moodMost of the feared tax and policy changes have been ruled out and the top end picked up in September, but too late to lift a subdued quarter.
- Nick Gregori on the quarter and what comes next
- Anthony Payne’s opening thoughts
- What agents say would bring buyers back
- Sales marketFewer buyers, fewer sellers and slower price fallsSales volumes fell 10.0% and under offers 12.8%, but lower supply has slowed price falls to 4.0% across prime London and 2.3% in PCL.
- Interactive activity chart for all prime London and £5m+
- Ten years of the LonRes Prime London Sales Index
- Agents’ price and transaction forecasts for 2026
- Agent SurveyWhat 350+ agents are seeing on the groundDemand from developers, investors and second home buyers has fallen sharply while owner-occupiers held up. Agents put taxation, and stamp duty above all, at the top of what is holding the market back.
- Net balances by buyer type, location, price band and weekly rent
- Agents’ forecasts for prices, rents and volumes
- Open-question answers in agents’ own words
- Lettings marketRents rise 4.0% as the Renters’ Rights Act splits the marketRental growth reached its highest level in over a year and yields rose to 5.19%. Demand is strongest below £2,000 a week, where the Act applies.
- Ten years of the LonRes Prime London Rental Index
- Time on the market and discounts to asking rent
- What letting agents expect for the rest of 2026
Policy stability and better economic growth may be the best that can be hoped for.
Prime London property market: your questions answered
Are prime London house prices still falling in 2026?
Yes, but more slowly. The LonRes Prime London Sales Index recorded an annual fall of 4.0% across prime London in Q3 2026 and 2.3% in prime central London. Lower supply has helped to slow the pace of falls. Over the past decade values are down 9.2% across prime London and 10.6% in PCL.
Why are prime London sales volumes down in 2026?
Transactions fell 10.0% year on year in Q3 2026. Agents report much weaker demand from developers, investors and second home buyers, and new instructions fell 9.3%, so there are fewer buyers and fewer sellers. Under offers were down 12.8%. The £5m+ market fell 9.3% on the year but was 10.9% above its longer-term average.
What discount to asking price are prime London sellers accepting?
The average discount from initial asking price to achieved sale price was 10.1% across prime London in Q3 2026 and 12.7% in prime central London. Both are above long-term average levels but falling back from recent highs. At the end of September there were 3.1% fewer homes on the market than a year earlier.
What do prime London agents expect for the rest of 2026?
Three-quarters of Agent Survey respondents expect prices in their local market to end 2026 lower than 2025, with 47% expecting a fall of 1 to 5%. 53% expect fewer sales transactions than last year, against 29% expecting more. In lettings, almost 4 in 5 expect rents to rise over the year.
Is the prime London rental market growing again?
Yes. The LonRes Prime London Rental Index recorded 4.0% annual growth across prime London in Q3 2026, up from −0.1% in Q2, with PCL rents up 5.8%. The average gross yield rose to 5.19%, well above its 2013 to 2020 average of around 3.5%.
How is the Renters’ Rights Act affecting prime London lettings?
Agents told the Autumn 2026 survey that the Act has tightened supply, with some landlords selling and others moving to company or short lets. Tenancies above £100,000 a year fall outside the Act, which has created two almost separate markets: demand is rising below about £2,000 a week and falling above it.
What is the LonRes Agent Survey?
A survey of LonRes sales and lettings subscribers published twice a year. The Autumn 2026 edition ran from 25 September to 13 October 2026 and received more than 350 responses across 17 questions. Results are reported as net balances: the proportion of respondents answering positively minus the proportion answering negatively.
About this data. LonRes tracks achieved prices, activity and stock across prime London using data shared by the capital’s leading agents. Analysis by Nick Gregori, Head of Research. Media enquiries: research@lonres.com.
Source: LonRes. Prime London Market Update: Autumn 2026. Q3 2026, 1 July to 30 September.