Prime London house prices fall despite steady sales activity, LonRes finds
Average achieved sale prices across prime London were down 8.2% year-on-year in June and remained 5.5% below pre-pandemic levels.
Prime London house prices fell in June despite a modest improvement in sales activity, while rental values edged higher for a second consecutive month, according to analysis from LonRes.
Average achieved sale prices across prime London were down 8.2% year-on-year in June and remained 5.5% below pre-pandemic levels.
Sales transactions increased by 4.8% compared with June 2025 but were still 2.1% lower than the 2017-2019 June average.
New instructions rose 2.2% annually, while the number of homes available for sale was 3.1% higher than a year earlier.
The super-prime market showed mixed performance.
Transactions for properties worth more than £5m increased by 7.1% year-on-year, while new instructions fell 17.3% and available stock declined by 3.3%.
The report also highlighted continued pricing pressure, with the average discount from the original asking price reaching 10.4% in June and more than half (50.5%) of completed sales involving properties that had previously seen a price reduction.
Price reductions also reached record levels for the month.
In the lettings market, average rents increased by 2.4% annually and remained 37.1% above pre-pandemic levels.
New rental instructions rose by 11.4%, while the number of available rental properties increased by 19.1% compared with June 2025.
Lettings agreed fell by 1.1% over the same period.
Nick Gregori, head of research at LonRes, said: “June saw trends in the prime London sales market continue from where they’d left off in May, with slight annual growth in instructions and transactions but a further fall in values and a lot of withdrawals.
“Compared to longer-term trends there is less balance in the current market, with more supply than demand and much of that supply subject to price reductions.
“The mildly positive data for June sits in contrast to the latest feedback from agents, who reported an increasingly difficult market as we move into summer.
“With many deals taking months to get from under offer to exchange, it is not necessarily a surprise that these viewpoints are not aligned, but they suggest limited chance of a more significant recovery.
“Specific comments noted that buyers seemed particularly hesitant and non-committal, leading to last-minute fall throughs in some cases.
“The rising number of withdrawals includes some homes that may have been on the market for a while where vendors are choosing not to reduce prices further.”
Gregori added: “The trends at the top end of the market are broadly the same, with the more discretionary nature of super prime buyers and sellers meaning urgency is in even shorter supply.
“At this price point there is additional uncertainty from the change in Prime Minister, centered around whether this could restart the debate about property and wealth taxes.
“On the international side, based on oil price movements the conflict in Iran appears to be winding down though, as I write (in early July), both sides have this week accused the other of breaking ceasefire agreements.
“In the prime London lettings market, following a second month of rental growth it is tempting to now say that the introduction of the Renters’ Rights Act has caused rents to rise, but this is likely too simplistic.
“After a few months of small falls and a longer period of relatively minor movements in either direction we are a long way from a real trend of significant rental growth being established.”
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