March saw strong activity in Prime London, though this may be a temporary spike caused by lowering of the stamp duty thresholds from April.
In Prime London new sales instructions rising by 14.6% year-on-year, analysis from property analysts LonRes shows.
This also represents an increase of 29.8% from March in the pre-pandemic years between 2017 and 2019.
At the end of March stock levels were 9.1% higher than a year earlier and 36.0% up on March 2020.
Nick Gregori, head of research, LonRes said: “After many months where the flow of under offers into exchanges has not been smooth, this pick up in deals going through is a welcome result for buyers, sellers and agents.
“As always with a single good month or even quarter, it will take longer to know if this is a sustainable increase in activity or a temporary one.
“There is an argument in favour of the latter given that the ending of the stamp duty holiday on 31 March is likely to have created pressure to conclude deals and secure a tax saving, however small. From April we may see a return to less decisive buying activity without this incentive.”
The rental market in Prime London is quieter, as LonRes data for March indicated an annual decrease of 34.2% in lets agreed and a 23.5% decrease in new instructions, with activity on both measures remaining well below pre-pandemic levels.
The stock of available rental properties decreased on an annual basis, with 16.0% fewer homes on the market across prime London at the end of March than a year earlier.
LonRes warned that that these measured activity levels may overstate the true falls as fewer rental properties are being advertised.
Gregori added: “Unlike the volatility seen in the sales market, prime London lettings has been consistent so far in 2025.
“Low levels of new instructions are limiting activity, with the usual caveat that many deals are taking place without the properties being marketed. Annual rental growth was 4.9% in March, with our inner prime catchment recording the largest rise this year.”
