Sales volumes across prime London remained low in June, completing a sluggish Q2 after the stamp duty increase from April. Values were stable on an annual basis, while rising under offer numbers point to a potential improvement in activity as we move into the second half of the year.
This is according to property data consultancy LonRes.
Average values across prime London fell by 0.2% on an annual basis in June but were 1.7% above their pre-pandemic (2017 to 2019) average level. While this latest annual figure continued the trend of values falling or moving sideways, the month-on-month figure showed growth compared to May. This may mean that values are bottoming out.
At a national level, house price growth was slower in June, with Nationwide’s index reporting a monthly fall and the smallest annual rise in more than a year. Over the past decade, the ratio of the average prime London sale price to the national average house price has been steadily declining, from 9.2 in June 2015 to 7.1 in June 2025.
Other pricing indicators also lend weight to the idea that values are stabilising. The average discount from initial asking price across prime London was 8.2% in June and the proportion of sold properties that had previously been reduced was 41.5% – each of these metrics the best so far this year.
The data on activity is mixed, with external factors continuing to result in volatile monthly data.
There were 27.1% fewer transactions in June than the same month a year ago, and 18.4% fewer than the 2017-2019 (pre-pandemic average) June average.
By contrast, the number of properties going under offer was 9.0% higher than a year ago and 22.7% higher than the 2017-2019 (pre-pandemic average) June average. Under offers had recorded a couple of poor months recently – borne out in the transaction data – so a positive move bodes well for sales volumes in the near future.
After a pause in May the pace of growth in supply increased again in June. New instructions were 19.0% higher than the same month last year and 20.1% higher than the 2017-2019 June average. The number of price reductions increased again, with a 50.6% rise in June compared to last year. Stock on the market at the end of June was 13.3% higher than June last year and 40.2% above the level five years earlier (June 2020) – although it’s worth mentioning that the 2020 baseline is volatile due to lockdown’s impact on the market.
At the halfway point of the year, reviewing the year-to-date figures helps put the current market in context, suggests LonRes.
Transactions in the first six months of 2025 were down 6.0% compared to the same period in 2024 but were up 1.0% on the 2017-2019 (pre-pandemic) H1 average. Under offer numbers are up 1.0% annually and 18.0% on their 2017-2019 average level. New instructions were 14.2% higher compared to last year and 26.3% higher relative to their 2017-2019 average. Price reductions have seen the biggest increases, rising by 42.7% on an annual basis and 54.1% over the longer comparison period.
In summary, while market activity remains relatively robust compared to historical trends, it is clearly price sensitive as a higher number of vendors compete for a stable or slightly smaller pool of buyers.
The super prime sales market (£5m and above) continued to see high supply and steady sales in June. There were 42.9% more new £5m+ instructions compared to the same month last year, which was 108.6% higher than the 2017 to 2019 June average. There were 7.7% fewer transactions in June on an annual basis, 12.2% below the 2017 to 2019 June average. The number of £5m+ homes on the market at the end of June set another record high after rising by 24.7% over the past 12 months.
Looking at sales volumes over the first half of 2025, the £5m+ market has fallen back compared to 2024 – there have been 10.5% fewer transactions this year so far. Activity here has held up slightly better than the £1m to £5m price bands, whereas under £1m has seen growth of 5.9% over the same period.
Compared to the long-term baseline, £5m+ remains the most active market so far this year, with 27.9% more sales compared to the 2017 to 2019 H1 average.
Please visit:
Our Sponsor
