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Coutts London Prime Property Index – Repricing opportunities

Q3 saw further discounts across prestigious postcodes, alongside a widespread decline in transaction numbers, providing considerable potential advantages for buyers.

Overview

Prime London property prices fell 5.8% last quarter, leaving values 14.7% below their historic peak. As the market continues to reprice, changing valuations and softer transaction activity raise important questions for buyers and existing owners: what could current conditions mean for long-term property investments and financing decisions?

Prime property clarifications post Autumn Budget

The Autumn Budget reduced some uncertainty for the property market. The announcement showed that stamp duty remains unchanged, as does the additional-property stamp duty surcharge of 5% and capital gains tax (CGT) on sales. The high-value council tax surcharge on properties worth more than £2m is still due to come into effect in England in April 2028.

One notable change is the rise in tax on ‘unearned income’, which includes rental income, leading to an increase of payment of 4 percentage points above current income tax levels from April 2027. This change does not apply in Scotland.

Read our Autumn Budget overview

Alongside this clarity, the latest market data from Q3 shows Prime London Property now could present some real opportunities for buyers.

If you have any questions or queries about the Autumn Budget, what it may mean for your property portfolio plans, or your broader wealth strategy, please contact your Private Banker.

Prime property pricing

Annual pricing declined by 4.7% in Q3, with average values across the market now sitting 14.7% below their Q2 2014 peak, highlighting the prolonged repricing that has taken place across many prime central London locations.

Source: Coutts/LonRes

Some of the most significant adjustments were in Knightsbridge and Belgravia, where values remain 30.8% below peak, and South Kensington, where prices are 26.9% below their historic high and at a thirteen-year low.

Source: Coutts/LonRes

Price declines were widespread during the quarter, with every prime London market recording a fall in values, with the exception of –

  • King's Cross and Islington
  • Marylebone, Fitzrovia and Soho
  • St John's Wood, Regent's Park and Primrose Hill

Helping international clients find their London homes

For our international clients, currency movements can add another consideration to property financing. Our currency-linked mortgage arrangements allow for lending secured against overseas assets or income. We recently supported a family relocating from Switzerland through this service, arranging a swift completion through a specialised mortgage.  

Discover how our Private Lending service could support your goals.

Credit is subject to status and approval. Security and fees may apply. Over 18s only. Your home or property may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. 

Discounting continues

Average London property sales in Q3 saw discounts of 10.3%, with 82% of all transactions completed below original asking prices. Discounting activity is in part driven by a decline in transaction activity, which dropped 9.1% in the quarter. The slowdown was most pronounced in the £2m-£5m segment, which was down 22.3% annually.

There was an outlier, however. Sales in Fulham and Earl’s Court, and Wimbledon, Richmond, Putney and Barnes increased both quarterly and annually, with activity also running above the ten-year average. This reflects the continued strength of needs-based demand in family-focused locations, even as the wider market remains subdued.

Stock levels

Prime London property supply tightened during Q3, with new listings falling 14% compared with Q2 and available stock declining 6% annually. While lower prices may present opportunities for long-term purchasers, reduced supply could limit choice and affect further repricing, particularly for desirable properties. For clients considering substantial property investments, this reinforces the importance of balancing attractive entry valuations against asset quality and long-term demand.

Helping clients find their perfect property

With negotiating conditions varying considerably across London, identifying the right property at a correct valuation and having a specialist team in your corner could be vital.

The Coutts Property Finder Service connects clients with our selected panel of buying agents to help identify off-market opportunities and negotiate optimal terms. Designed around our clients’ needs, we recently helped a family acquire three properties, including an off-market purchase, alongside bespoke mortgage and offset arrangements tailored to their broader financial objectives.

Speak to your Private Banker to find out how our Property Finder Service could help you take advantage of the market.

Criteria and terms and conditions apply. Referral fees may also apply.

Key takeaways

Prime London property repricing presents selective opportunities, but successful long-term decisions require more than just securing an attractive purchase price. Understanding local market conditions, managing currency exposure and preserving investment liquidity are increasingly important considerations for many.

For Coutts clients, aligning property selection and financing arrangements with wider wealth objectives is often central to navigating the changing market. Softer prices and persistent double-digit discounts are creating attractive entry points for well-capitalised, long-term buyers, particularly in the most heavily repriced central locations.  The Autumn Budget has brought greater clarity on taxation and interest rates that could help to unlock property demand. That is likely to quell some of the uncertainty and cautiousness that has dominated the property industry in Q3.

Helping clients access liquidity while staying invested

For clients wishing to preserve their investment portfolios, Coutts’ Investment Backed Lending provides an alternative source of liquidity. Borrowing against investments could allow you to pursue property opportunities while seeing potential long-term growth by staying invested in global equities.

Please speak to your Private Banker to find out more about how we can support you.

Not a client? Let’s begin our conversation

Your home or property may be repossessed if you do not keep up repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt (multi-currency debt only).

Over-18s only. Terms and conditions apply. You may not be eligible for all Coutts mortgage solutions. Security may be required. Product fees may apply.

To qualify for investment backed lending, you must:

  • hold over £1 million in investments with Coutts
  • be aged 18 or over
  • demonstrate a sound understanding of the risks involved

It may not be suitable for you if:

  • you rely on the income and capital from your investments and cash to maintain a standard of living
  • you’re considering it for residential property renovation or improvements

Lending against investments must not be used for residential property renovation or improvements.

The final decision whether to proceed must be your own and, in making your decision, you should carefully consider the comparison between borrowing costs and potential investment gains or losses.

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