In the 12 months to August 2025, there were approximately 71,600 property sales across Greater London, representing a 13.7 % drop compared to the prior 12-month period.
New-build properties accounted for only 3.1 % of those sales (≈ 2,200 units), with the vast majority being established homes.
Most transactions occurred in the £500,000–£750,000 price band (29 % of sales), followed by the £400,000–£500,000 range (20 %)
In the prime London market (homes over £5 million), activity has cooled: in H1 2025, sales volumes were down ~8 % year-on-year.
Meanwhile, the Coutts Prime London Index shows that average prime London prices fell by 2.6 % in Q1 2025 relative to the previous year, trading 1.6 % below Q1 2024 levels.
Discounting is more common: 82 % of prime transactions are agreed at a discount, with average discounts around 9.3 %.
London home sales dynamics reflect a market under pressure from affordability constraints, higher borrowing costs, and caution among buyers.
High interest rates remain a barrier to many buyers. The cost of borrowing has squeezed purchasing power and led many to delay or forego moving.
New instructions to sell remain modest, with stock levels constrained in many desirable boroughs. In prime central London, the decline in listings is particularly acute.
With buyer sentiment cautious, many vendors are accepting offers below asking price. In prime zones, discounting is entrenched.
Prime central London (Chelsea, Kensington, Mayfair) sees steeper declines and more volatility than suburban or outer zones, where demand among families and commuters remains steadier.
Buyers may find negotiating room—especially in prime areas—but must ensure their financing is solid and contingency plans in place.
Sellers will need realistic pricing, flexibility on terms, and strong marketing to stand out.
Investors looking at value-add or refurbishment projects might find better margins given the softening in pricing at the top end.
Fraser Bond’s role is to help clients navigate this dynamic: matching deals to risk appetite, structuring financing, and anticipating value corridors.
Fraser Bond offers full advisory services to clients in the London home sales market:
Sourcing & Deal Access – Early access to listings and off-market opportunities
Valuation & Market Benchmarking – Comparative analysis to guide bids or offers
Finance Structuring Advice – Bridging, mortgages, refinancing for London properties
Negotiation & Transaction Management – Protecting client interests in bidding and contracts
Risk Assessment & Due Diligence – Title, structure, compliance, and refurbishment risk
Exit Planning & Value Maximisation – Post-purchase strategy to capture upside
If you’re considering buying, selling, or investing in London homes, our team at FraserBond.com can provide a tailored analysis of your target zone and optimal strategy.
