Buyers saw lower values in UK prime property markets, creating more choice and less competition, according to Savills research.
Prime central London prices were down 1.5% in Q2 2025 compared to Q1, and 3.7% lower year-on-year.
Prices in outer prime London fell 0.5% on the quarter and stayed flat over the year.
Prime property regional values dropped 1.9% in Q2 and 2.7% compared to the same quarter last year.
Prime properties outside London, which rose after lockdown but fell as rates increased, saw further falls.
The number of London movers decreased and the commuter belt got smaller, with more demand in suburban areas.
Lucian Cook, head of residential research at Savills, said: “On the ground, we have seen the number of movers from London slip back as the commuter belt contracts and demand is more focussed on London’s suburban markets.
“This combined with greater economic uncertainty and concern over tax among discretionary buyers has created a classic buyers’ market, with more stock available to choose from and less competition.
“That being said, the number of properties going under offer across the board remains higher than last year, as needs-based buyers continue to drive momentum.”
The county house market, typically above £3m, saw average values fall 6.2% over the year.
Price growth for prime homes was only seen in Scotland and the North, up 0.1% and 0.7% respectively.
In prime coastal markets, higher council tax and Stamp Duty meant average values dropped 6.7% over the year and 15.7% since the peak almost three years ago.
Cook said: “Discounts in London have been widely reported, but less has been said about the opportunity for buyers in traditional country and coastal honeypot markets.
“Recent buyers have been able to secure a prime family house in the South of England with up to six bedrooms for an average of £2.4m.
“That is on average £280,000 less than they could at the market peak in September 2022.”
In prime central London, prices were already 21% below the 2014 peak and dropped another 1.5% in Q2 2025.
Alex Christian, director co-head of Savills private office, said: “Following tax changes introduced at the last budget, there has been a smaller pool of increasingly price-sensitive buyers.
“Importantly, we haven’t seen a flood of new stock, but properties are typically remaining on the market for longer as buyers bide their time, with some weighing up options amidst early speculation around changes to some elements of non-dom policy.
“Increasingly we are seeing buyers recognise the historic value on offer. In particular, domestic buyers purchasing a main residence make up a larger proportion of our buyers.”
