Sales activity
The delayed Autumn Statement at the end of last year led to a prolonged ‘wait‑and‑see’ period for both buyers and sellers. While the 2025 Autumn Statement introduced some changes, the outcomes most feared ultimately failed to materialise however, the timing meant 2026 began with subdued momentum, compounded by the fact that it takes an average of around 180 days to sell a prime London property. As a result, Q1 prime sales volumes were the lowest quarterly total since the pandemic.
Despite this, forward‑looking indicators are more encouraging. By the end of Q1, 841 prime transactions were under offer, the highest Q1 figure recorded in over a decade, largely reflecting the market catching up after a particularly quiet close to 2025.
As a result Q1 showed:
- Sales volumes were 18.8% down compared to Q1 the year before
- Central London was especially affected, including areas such as Pimlico, Westminster & Victoria, Kensington, Notting Hill & Holland Park – all markets that rely heavily on confidence‑driven, discretionary buyers.
- In contrast activity increased in areas such as Wimbledon, Richmond, Putney & Barnes and Hampstead & Highgate, markets generally driven by demand from domestic buyers.
Super prime market
The super prime (£10m+) transaction volumes in Q1 were broadly in line with long‑term, 10-year averages.
Super prime activity in the first quarter of the year was concentrated in Kensington, Notting Hill & Holland Park; Knightsbridge & Belgravia and Regents Park, Primrose Hill & St John’s Wood.
The recent sale of Providence House in Chelsea, reportedly in excess of £265 million, marks London’s most expensive residential transaction on record and ranks among the most significant globally. While sales of this scale are exceptionally rare, the completion of such a deal provides an important signal of underlying confidence.
Market supply
Following a material contraction in Q4 ahead of last year’s Autumn Statement, supply rebounded sharply at the start of 2026, improving market liquidity.
- New instructions increased 49% in Q1 quarter‑on‑quarter, reflecting a backlog of listings deferred at the end of last year.
- The number of homes available on the open market rose 9% quarter‑on‑quarter and is 6% higher than a year ago.
Conclusion
As the London prime market moves into the 2026 spring selling season, conditions remain balanced rather than buoyant.
Supported by domestic demand and lifestyle fundamentals, outer prime markets have continued to show greater resilience.
Prime central London prices remain below 2013 levels, and with the US dollar significantly stronger against sterling over that same period, conditions present a particularly attractive entry point for dollar‑denominated buyers. Against a backdrop of ongoing geopolitical uncertainty, London continues to function as a trusted safe‑haven destination for global capital.
