2025 London Property Market: Expert opinions and emerging trends

The majority of buying agents we consulted have observed a decline in new business compared to the previous year, with a noticeable drop in transaction volumes. Buyers are primarily focused on value, with deals happening only when properties are sensibly priced or when sellers are willing to negotiate. The market is also feeling the impact of international issues. Despite these hurdles, some agents have experienced a robust start to the year, handling a mix of primary and secondary home purchases in London for UK clients and there has been an increase in clients purchasing from the US. 

Jo Eccles: "Market activity has increased steadily since the start of the year, but transaction volumes are still muted. Buyers are extremely value driven and transactions are only being agreed when properties are realistically priced to begin with, or when the seller is open to meaningful negotiation." 

Camilla Dell: "2025 has started strong for Black Brick. We've exchanged on a raft of properties ranging from pieds-à-terre for overseas buyers in prime Chelsea at £5m all the way up to a spectacular forever Grade II listed off market home in Hampstead for a British family... As the year progresses it will be interesting to see how the current volatility in the financial markets due to US tariffs impacts sentiment on London property. We anticipate that the effect will be more muted than the financial crisis of 08/09 but it iss early days still." 

Giles Elliott: "I have had a huge number of pitches to new clients, most of whom are looking for similar types of property which is unusual. Smaller units, pied-à-terre, downsize and purchases for children being the main motivation. There are some larger searches, although they are taking time to make decisions mainly due to a lack of good stock." 

Interest from US buyers has risen, influenced by political circumstances, while Middle Eastern buyers are actively seeking investment opportunities. Domestic buyers are generally cautious about taking on mortgages, but those with substantial cash reserves remain engaged. Many are transitioning from renting to purchasing long-term homes, driven by factors such as education and lifestyle changes. Popular areas include Chelsea, Kensington, Notting Hill, and Richmond. Overseas buyers, particularly from the US and Middle East, are drawn by advantageous currency rates. 

Ollie Marshall: "We have seen an increase in enquiries from the US for residences in the UK country and London following on from what was an incredibly polarising election. We have also seen an increase in buyers from the Middle East, Saudi, Kuwait especially looking for investment opportunities." 

James Rawes: "[There is an] uptick in buyers from the US looking for a home away from the political upheaval there. National buyers [are] cautious about mortgages but cash rich buyers [are] still active and looking to buy soon before the market recovers."  

Camilla Dell: "Around 60% of our client base is UK domestic and 40% is overseas. Overseas buyers consist of US, Middle East and European buyers attracted to London for a variety of reasons ranging from lifestyle, education and diversification from home. For these buyers London is looking cheap, especially for buyers pegged to the US dollar who are benefitting from an effective discount of around 38% in PCL compared to July 2014, when accounting for both currency fluctuations and property price movements. Our British clients are buying a variety of properties with us ranging from forever family homes through to holiday homes. Many buyers view the current market as a real “buyers' market” with more supply and significantly more realistic sellers."  

Jo Eccles: "Interestingly, of our own clients, more than half are moving out of rental homes and committing to the stability of a long term purchase. Clients are also buying for reasons such as for secondary schools, starting a new chapter post-divorce, or moving to London for new business ventures – either from the countryside or internationally relocating here. Despite the many reports of people leaving the UK, others continue to come here for work or children's schooling. The Chelsea, Kensington, Notting Hill, St Johns Wood corridor remains in demand with our clients, as well as Barnes and Richmond for the Harrodian School and Ibstock Place." 

The supply of high-end properties is anticipated to grow, although many sellers are aiming for prices akin to those in 2021, despite current values being roughly 10% lower. Predictions for the property market are varied. Prime Central London is viewed as offering good value and stability, potentially drawing international buyers seeking secure investments amid geopolitical uncertainties. The market is expected to be active, driven by the availability of competitively priced properties. Some foresee a potential decline in values if economic conditions deteriorate, while others believe the market could be invigorated if interest rates are reduced in response to US tariffs. The market is not uniform, with areas like Notting Hill showing more resilience compared to others like Knightsbridge. 

Giles Elliott: "Busy but very much stock led. If there are good properties at the right price we will see transactions."  

Henry Pryor: "Supply of homes for sale looks likely to mushroom with more high value properties coming to the open market."  

Ollie Marshall: "Prime Central London real estate is well placed going into a period of heightened geopolitical uncertainty... Yields are also attractive once again so we could see further haven demand as international clients look to rotate out of riskier assets."  

Camilla Dell: "The impact of what is happening in the financial markets is so fresh that predicting the future seems an impossible task right now. If interest rates are cut dramatically in response to US tariffs this could stimulate the property market. However, with other factors at play such as the continued fallout of UK Res Non-Doms leaving London, we agree with Savills forecasts that London will see a 4% drop in values this year before starting to recover next year. It's important to highlight however that London property is not homogeneous. Each area, property type and value range can behave quite differently from another."  

There is a noticeable difference between what sellers expect and what buyers are willing to pay in the current market. High-quality, well-priced properties are selling successfully, often in competitive bidding situations, while those priced too high struggle to gain interest and often require price reductions. New builds command a significant premium over the secondary market, underscoring a shortage of new build stock in central London. Buyers often find it challenging to gauge the right price, leading to missed opportunities due to incorrect offers. Some super prime properties are being sold at much lower prices, highlighting the need for realistic pricing. Overall, the market features a broad spectrum of asking prices, and sellers need to adjust their expectations to align with current market realities. 

Camilla Dell: "There is evidence of some once in a lifetime transactions taking place on super prime trophy assets at significantly lower values than the original asking price... Our advice to would be sellers is to be very realistic on price. Anything coming onto the market at inflated levels isn't being considered, especially by buyers that are represented by buying agents."  

Giles Elliott: "For good quality properties, there still seem to be best bids scenarios and prices paid go from strength to strength. The disconnect and gap between seller's expectations and what's realistic and what purchasers are prepared to pay, however, is wider than ever for more 'run of the mill stock'." 

Ollie Marshall: "It's a wide range… the premiums for new builds when compared to the secondary market are eye watering but highlights the shortage of new build stock in central London. I feel there's a lot more value in the secondary market and have some concern about the trajectory of service charges in some new developments." 

Henry Pryor: "Sellers think it's 2020, agents think it's 2023. Buyers think it's 2017." 

James Rawes: "Prices have softened in central London in the last 18 months but there are still opportunities for buyers to get a further reduction if they are in a strong position." 

Jo Eccles: "The biggest challenge facing most buyers today is how to accurately determine the correct price level and be certain you're not overpaying."   

Price per square foot is considered a useful guide in property evaluation but is not the sole determinant of a property's value. While it serves as a starting point, many other factors significantly influence a property's worth, such as volume, light, unique features, outside space, amenities and location. Professional valuers often use price per square foot as a tool, but a comprehensive evaluation requires considering these additional attributes. Buyers should be cautious not to overly focus on price per square foot, as it can overlook the finer details that contribute to a property's overall value. 

James Rawes: "It is a guide but there are far more subtleties in valuing a property than just £ per sq. ft. A good buying agent will advise their clients on all factors affecting the price." 

Henry Pryor: "If it were possible to value a home in this way there would be an app on your phone that would tell you what it was worth, and I'd be out of a job!" 

There isn't a definitive trend of ultra-high-net-worth and high-net-worth individuals leaving the UK due to changes in non-dom regulations, though some cases have been noted. While a few clients are moving to tax-favourable locations like Monaco, Italy, and the UAE, this movement seems to be slowing. Many clients who are leaving are choosing to rent out their UK properties, focusing more on the quality of tenants than on rental income. Overall, while there are instances of relocation, it is not widespread and many clients are maintaining their UK properties. 

Camilla Dell: "Some are relocating. We've had about half a dozen clients whom we've acted for contact us to say they are selling up and leaving but that's low in the context of how many clients we've looked after since 2007. Most are holding onto their London homes." 

Jo Eccles: "More people are leaving the UK as the start of the new residence-based tax regime begins, and in recent weeks our Property Management team has taken on an influx of new properties to be rented out or kept turnkey ready… Buyers from the US continue to move against the tide, since the US is virtually unique in imposing worldwide taxation on its citizens regardless of where they live. Demand from American buyers has been building steadily during the last 12–24 months… and they now account for approximately 30% of our clients. London's culture, world-class education system and strong legal and financial framework are a powerful draw, as well as the absence of gun crime."