Prime central London residential market sales fell 24% year on year to their lowest Q1 level since 2020, according to data from property adviser JLL.
In its latest prime central London index, JLL said just 350 homes were exchanged in Q1, down 22.5% on the previous quarter and 24% on Q1 2025 for properties valued under £2m.
Prime Q1 central London housing sale volumes totalled £743m, 28% below the previous two-year Q1 average of more than £1bn.
The index also recorded a 2.2% quarterly price fall, while prices were down 8.7% annually. Mortgage-dependent buyers in the sub-£2m and £2m to £5m brackets were hit hardest, with prices falling 9.8% and 9.2% respectively.
Last week, data from LonRes also revealed that London residential sales fell 13.3% last month compared with March averages for 2017 to 2019, while £5m-plus deals fell 3% year on year.
While the sales market dipped, JLL recorded a 13% rise in lettings during Q1 compared to a year earlier.
The index also reported that homes available to rent at the end of Q1 increased 29% year on year to nearly 1,500.
Meg Eglington, associate in the UK residential research team at JLL, said: “Across the UK housing market, needs-based movers remain active, but discretionary purchasers have pulled back since late February, impacting PCL [prime central London] more markedly, given its higher proportion of choice-driven buyers.
“The rental market offers some encouragement. The increase in lettings year-on-year suggests appetite for prime central London living continues, with potential buyers choosing to rent while they wait for greater certainty.
“However, with stock levels up 29% year-on-year, landlords are competing for tenants rather than driving rental growth.
“As a global city, prime central London’s trajectory remains closely tied to global economic stability. High stock levels across lettings and sales are likely to continue moderating price movements in the near term, although the rise in lettings suggests the underlying fundamentals of PCL’s appeal remain in place.”
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