Transaction volumes in London’s prime property market increased 14% across the capital in the three months to July compared with the same period last year, according to data from Knight Frank.
The estate agency’s latest figures show a 3% rise in prime central London specifically, though the firm noted that 2025 provided a relatively low baseline for comparison after a subdued 12-month period.
Market conditions stabilise
Tom Bill, Head of UK Residential Research at Knight Frank, attributed the uptick to reduced political uncertainty following council tax announcements in November. “New rates of high-value council tax announced in November look like the thin end of the wedge for a government with limited capacity to fund its spending plans, but they weren’t as bad as feared,” Bill said.
The agency’s data shows that by March, the number of offers made in prime central and prime outer London was 8% higher than the previous year, leading to increased transaction activity over the summer months.
Bill added that speculation ahead of October’s Budget has been more subdued this year, particularly after Prime Minister Andy Burnham ruled out a land value tax.
Supply constraints drive buyer behaviour
Stuart Bailey, Head of Prime Central London Sales at Knight Frank, reported that limited availability of properties is altering buyer strategies. “Buyers who were previously unwilling to consider refurbishment projects are doing so to ensure they get what they want,” Bailey said.
He noted that purchasers at the upper end of the market typically spend one to two years searching for properties, with some now willing to undertake renovation work to secure their desired home.
The shift in buyer behaviour comes as the broader property market experiences changes across various sectors, including increased scrutiny in mortgage lending and evolving financing arrangements for high-value properties.
The prime London market’s performance in the coming months will likely depend on policy decisions in the October Budget and ongoing supply constraints in sought-after areas.
