London house prices fall fuels sales surge
Sales of prime central London housing jumped up during the first three months of 2025 as prices fell amid the ongoing global uncertainty.
Residential sales activity in the first quarter rose 12 per cent compared to 2024, according to new research from global property advisor JLL.
“There are clear signs of renewed confidence across prime central London, with strong sales activity and a notable increase in new listings helping drive momentum,” Marcus Dixon, director of UK residential research at JLL, said.
“Sellers are returning to the market, with both domestic and international buyers seeking out opportunities. But those looking to sell need to ensure they are priced competitively, with buyers still cautious.”
Average prices across prime London fell 0.6 per cent over the quarter and 3.3 per cent annually, as buyers felt “emboldened to negotiate amid ongoing economic uncertainty”, JLL said.
Savills similarly said the political upheaval of 2024 and the “broader atmosphere of caution” has caused a slump in the market.
The company also pointed to the unwinding of the ‘non-dom’ status and an increase in the higher rate of stamp duty for second homes to five per cent.
Across prime central London, prices are down 21.2 per cent from their peak in 2014, or down 42.3 per cent on an inflation-adjusted basis, according to Savills.
The property company expected uncertainty to remain across London markets “as the ramifications for wealth creation and retention [from Trump’s tariffs] are digested”.
“Activity levels are likely to be supported by some safe haven investment, though the strength of this will be dependent on the relative strength of the US dollar against sterling,” the company said.
Dixon added: “An uncertain outlook for the global economy is holding some prospective buyers back, many of whom are renting instead, but for others interest in tangible safe-haven assets has increased in 2025, leaving London well placed to benefit from an increase in overseas capital as we move through the year.”