Property | 30 July 2025
Coutts London Prime Property Index Q2 2025 – Opportunities alongside challenges in the capital
Our latest Index shows pinch points for both buyers and sellers while revealing areas of significant price growth and the postcodes with the highest discounts.
Key stats
8.7%
Average discount negotiated by buyers for London prime property
77%
Percentage of properties sold at a discount to asking price
15.5%
Fall in sales volumes compared to previous year
Key stats
Average discount negotiated by buyers for London prime property |
8.7% |
Percentage of properties sold at a discount to asking price |
77% |
Fall in sales volumes compared to previous year |
15.5% |
As we move into the second half of 2025, London’s prime property market is presenting both opportunities and challenges. Below we examine these latest developments based on our Q2 data, providing insights into pricing, buyer behaviour, discounts, and market dynamics.
London Prime Property Prices
In Q2 2025, Prime London property prices increased by 7.4%, resulting in an average price that is now 2.3% higher than the same period last year and just 4.1% below the market peak.
Much of this growth has been driven by outer prime markets, including Hammersmith & Chiswick, and Wimbledon, Richmond, Putney & Barnes, which have shown strong price increases over the last quarter. Job market stability, rising wages and the expectation that interest rates will come down have contributed to the resilience in the market, particularly in the outer prime market. Additionally, areas such as Kensington, Notting Hill & Holland Park, and St John’s Wood, Regent’s Park & Primrose Hill have also recorded meaningful uplifts in average values.
In contrast, significant value for buyers remains in prime central London locations. Prices in Knightsbridge & Belgravia are still more than 20% below their market peak, while prices in Chelsea are 17.2% below their peak.
London luxury housing market discounts
Despite the upward trend in prices, buyers are still negotiating considerable discounts on prime and super prime real estate. The average discount on prime London property is now 8.7% —a slight decrease from the previous quarter but indicative of the consistent gap between buyer and seller price expectations.
In the latest quarter, 38.3% of sales had seen their published asking price reduced, and 77% of sales were completed at a discount to the asking price. While these figures indicate a modest decline from the previous quarter, they do suggest the gap between buyer and seller expectations may be starting to close.
Central London postcodes, such as Mayfair & St James's, are witnessing the largest average discounts at 17.7%, followed by Knightsbridge & Belgravia at 12.5%. Conversely, competition in outer prime markets is dampening discounts, with average discounts of just 2.1% in Battersea, Clapham & Wandsworth, and 4.5% in Wimbledon, Richmond, Putney & Barnes. Notably, our data reveals that larger discounts are more frequently achieved in higher price brackets.
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Conclusion
There is a nervousness in the market which has had a meaningful impact on transaction volumes across most areas. The disparity between buyer and seller expectations on price has meant the market has fallen into stalemate. Although prices have increased in the second quarter of the year, there is now a significant increase of supply in the second-hand market (non-new builds).
Navigating this, and its potential impact on how best to gauge prices going forward, will be one of the biggest challenges for buyers and sellers in the market throughout the remainder of the year.
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