The number of transactions in the prime London housing market last month fell 41% year on year amid weaker market conditions, according to new data from LonRes.
In its latest monthly analysis, LonRes reveals that the number of resi sales in London in March also fell 13.3% compared with 2017-19 March averages. In addition, transactions in the £5m-plus market dropped 3% year on year.
LonRes said that while transactions in March 2025 were bolstered by the end of the stamp duty holiday, sales activity in 2026 so far was still “well down on the long-term average for the time of year”.
Average achieved sold prices also fell by 5.5% year on year, and 7.5% compared with the 2017-19 March levels.
However, the number of lets agreed in March rose 36.6% year on year, with the number of letting instructions rising 61.7%.
The number of new sales instructions also increased 8.8% year on year, and 34.7% on 2017-19 March levels. Average rental values across prime London rose by 0.3% year on year, and 33.2% above 2017-19.
Nick Gregori, head of research at LonRes, said: “As a rule, properties take longer to sell in a weaker market. This means more time for people to change their minds or for potential issues with chains to develop.
“The lack of price growth means that there is little sense of urgency underpinning deals. For motivated sellers, realistic pricing is key to agreeing a deal in a reasonable timeframe – our data shows a clear correlation between time to sell and the discount from initial asking price.
“Looking ahead, global uncertainty and a weak domestic economy mean confidence in general is low. This limits activity from anyone who doesn’t ‘need’ to move and limits what those still in the market are willing to pay.
“Buying power has been further eroded by mortgage rates increasing and deals being pulled in response to inflation fears driven by the conflict in Iran.”
Data from the British Property Federation and Savills released yesterday (15 April) reveals that the number planning consents for build-to-rent properties in London are taking an average of 15 months to secure planning consent, 150% longer than the statutory time limit.
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