Coutts London Prime Property Index Q2 2026 – Market rebounds as demand rises

Pricing

Prime London prices increased by 4.3% during the second quarter of the year. However, values remain 5.6% lower than twelve months ago and 9.5% below their previous peak. In nominal terms, prices are effectively unchanged from thirteen years ago, highlighting the long-term underperformance of several Prime Central London markets.

Significant value opportunities remain evident across many established central locations:

• Knightsbridge & Belgravia remain 25.8% below their peak values, presenting compelling long-term value for strategic buyers.
• Pimlico, Westminster & Victoria are still 19.2% below their previous peak.

One notable exception in the last quarter was Mayfair & St James's, where average values sit at £2,539 per sq ft, making it approximately 44% more expensive than its closest rival, Knightsbridge & Belgravia. The area's global appeal, constrained supply and concentration of ultra-high-net-worth demand continue to drive a significant premium.

Sales activity

Market activity improved materially during the second quarter.

Prime transaction volumes increased by approximately 17% year-on-year. Quarter-on-quarter performance was even stronger, with transaction volumes increasing by 47.8% compared with Q1. This demonstrates a clear recovery from the pronounced market pause surrounding the Autumn Statement, which also had a knock-on effect on transaction volumes during Q1. With the exception of Hammersmith & Chiswick and South Kensington, every prime market recorded higher transaction volumes than in the previous quarter.

Several Prime Central London markets are now performing above long-term transactional norms:

• Transactions in Knightsbridge & Belgravia are 45.8% above the ten-year average.
• Transactions in Mayfair & St James's are 17.6% above the ten-year average.

While buyer confidence improved notably during the first half of the year, the market continues to contend with political uncertainty and speculation around the direction of future fiscal policy, including the contents of the government's Budget later this year. This uncertainty may temper sentiment in the second half of the year. Nevertheless, current activity levels suggest that committed purchasers remain active where pricing is perceived to offer value.

Super prime market

Despite continued negative headlines surrounding taxation, non-domicile reforms and the broader outlook for wealth migration, the super-prime (£10m+) market remains remarkably resilient.

Transaction volumes in this segment remain 34% above the ten-year average, highlighting the depth of demand for London's most exceptional properties.

Although buyers at this level are highly price-sensitive and negotiate aggressively, the sustained volume of transactions suggests that London continues to retain its status as a globally significant wealth hub. For many international purchasers, current market conditions are viewed less as a deterrent and more as an opportunity to acquire prime assets at prices that remain below historic peak levels.

The most active locations for super-prime transactions in Q2 were Kensington, Notting Hill & Holland Park followed by Hampstead & Highgate, Knightsbridge & Belgravia and St John's Wood, Regent's Park & Primrose Hill.

Market supply

Supply conditions improved during Q2 in line with a typically active spring market.

• Prime housing stock available for sale increased by 2% compared with Q1.
• Available stock is now 14% above the five-year average.
• New listings increased by 9% during the quarter.
• New instructions are now 33% above the ten-year average.

The gradual increase in supply is helping to maintain a healthier balance between buyers and sellers. While the rise in available stock is welcome news for buyers, a substantial proportion of higher-value properties continue to trade off-market.

With properties taking an average of 168 days to sell in London—and often considerably longer at the super-prime level—many vendors remain reluctant to expose their homes fully to the open market. Private marketing strategies continue to be widely used to preserve discretion, avoid public price reductions and prevent listings from becoming stale.

Conclusion

The second quarter marked a meaningful improvement in sentiment across the Prime London market. Transaction activity strengthened considerably, discounting moderated and prices recorded their first significant quarterly uplift in some time.

However, the market remains characterised by a clear divergence between Prime Central London and London's strongest domestic markets. While family-focused locations continue to deliver steady growth, many core Prime Central London neighbourhoods remain materially below previous peak pricing, creating attractive entry points for long-term investors and owner-occupiers alike.

Crucially, elevated transaction volumes—particularly in both Prime Central London and the super-prime segment—demonstrate that demand remains present when assets are correctly priced. Buyers continue to prioritise value, but they are willing to transact where opportunities are compelling.

Looking ahead, political uncertainty and budget speculation may continue to weigh on sentiment. Nevertheless, London's combination of price correction, increased supply and enduring international appeal positions the market on a firmer footing than headline commentary often suggests. For disciplined buyers, current conditions continue to offer some of the most attractive opportunities seen in the Prime London market for more than a decade.