We asked leading industry professionals to share the price and demand trends they have observed in the prime property market locations that are most popular with Investec clients.
Summary
Global political and economic uncertainty is said to have impacted demand in the prime London property market during Q1 2025. According to Savills, prices are relatively static, with a 2.6% fall in average prices recorded year-on-year. However, industry experts tell Investec that the picture is ‘incredibly nuanced’. Private banker Carlos Mendes explains: “The reduction in mortgage rates has been positive for our clients who want to preserve their personal liquidity. However, activity levels vary by property type and location, so it’s been more important than ever to understand local markets and provide tailored financial support.”
Here, property consultants describe the market dynamics in eight popular postcodes.
Hampstead (NW3)
Kim Blackman, Managing Director of Blackman Investments, says:
“NW3 has always been attractive to affluent couples and families. It is an elegant, leafy suburb with Georgian houses, independent shops and cafés that is still so close to Central London. It’s also just five stops by tube to Kings Cross.
On average, house prices in Hampstead and Belsize Park have fallen by 9% over the past 12 months. However, properties with a good layout and outside space in the £1.5m – £5m range remain unaffected and demand for these homes is still strong.
My advice for buyers? Work with a trusted search agent who will not only listen to your criteria, but also deal with all the complex issues that invariably arise throughout the process and ensure your interests are protected. If you are selling your home, a property consultant can advise you on how to maximise the value of your asset. By making certain changes to your property, it can make a significant difference to the sales price achieved.”
St John’s Wood (NW8)
Jo Eccles, Founder and Managing Director of Eccord, says:
“Family homes in St John’s Wood persistently outperform the market, with American buyers accounting for around 40% of our local clients.
St John’s Wood offers a greater range of architecture than other locations, with more lateral living space and some wonderful gardens on large plots. It is possible to achieve 5,000 square feet over three floors.
We’re seeing strong demand in the £10m – £15m price range from clients who are relocating for school places. Demand is also robust in the super-prime price range, and we recently acquired a £25m house in St John’s Wood for clients who wanted to be within walking distance of the American school.
In a higher interest rate environment, 80% of our clients were choosing to pay cash for a new home. However, recent rate cuts are encouraging. Certain professionals, such as private equity clients, are more inclined to borrow, to keep their personal liquidity available for other investments.
Buyers should be mindful that St John’s Wood is a very relationship-led market. More than half of the properties we acquire for clients in St John’s Wood are sold off market.”
Bayswater (W2)
Camilla Dell, Managing Director of Black Brick Property Solutions, says:
“Bayswater appeals to a wide range of buyers, ranging from families to property investors. The area has seen a surge in buyer demand, driven by a £3bn regeneration of Queensway, which includes high-end apartment complexes, restaurant pavilions and landmark retail destinations that will be completed in 2026. W2 is also within striking distance of some of London’s best schools such as Wetherby, Chepstow House and Pembridge Hall.
My favourite part of W2 is The Hyde Park Estate, a small triangle area bordered by the Bayswater Road, Edgeware Road, and Sussex Gardens. The architecture consists of grand, white, stucco-fronted buildings that surround various garden squares and crescents. Residents are close to the park and Connaught Street for essential shopping.
The volume of transactions in W2 is up 14% year-on-year, and there has been a 9% increase in prices. In the last three months, houses achieved an average sales price of £6,082,667. Homes in good condition with period features and high ceilings are most sought-after, particularly in quieter streets.
That said, Bayswater hasn’t been immune from the slowdown caused by increases in stamp duty and the abolishment of the UK Resident Non-Dom rules. The average discount achieved between February and April 2025 was 9% *.”
Chelsea (SW3)
Jeremy McGivern, Founder of Mercury Homesearch, says:
“We have observed a slight increase in buyer numbers in Chelsea in the last month, as interest rate cuts have increased confidence. Buyer demand is strongest for properties below £5m and buyers include parents looking to invest in property for their children, as well as individuals looking for a city pied-à-terre.
In most cases, it is properties that have recently been refurbished that are achieving premiums, while homes that have been refurbished more than six years ago are seen as being tired. We’ve seen that buyers are taking longer to make decisions too.
The golden rule is to remain patient and be selective. We sometimes find that sellers are not informed about what is happening to prices in their specific area. Consequently, you need to use specific negotiation techniques to achieve the lowest price possible. Relying on a price per square feet comparison rarely works, because logic is often not the deciding factor.”
Battersea (SW8)
Sarah Gerrett, Associate at Knight Frank in Battersea, says:
“Battersea is a very green neighbourhood with an excellent selection of schools so it’s a great place for families. In addition, some professionals look to buy a pied-à-terre close to Battersea Power Station with its excellent amenities and transport links.
Our Battersea index shows that prices rose 0.6% between January and April this year. Given that we are moving out of a volatile period of political and tax changes, and mortgage rates are now starting to ease, we believe this could be the bottom of the market, so it makes sense for sellers to explore their options now.
For homeowners, it’s imperative that marketing material and the viewing experience is excellent given that buyers have a lot of choice and are used to seeing beautifully stylised properties on social media.”
Fulham (SW6)
Edward Peers, Heads of Sales at Hamptons in Parsons Green and Fulham, says:
“Fulham attracts domestic buyers, as well as European buyers who are likely to live and work in London. For this reason, they are likely to move for lifestyle reasons and are less driven by economic events. Many of them tell us they are attracted to the local area because of the amount of green space and excellent schooling that it offers.
According to Land Registry data, in 2024 the average sales price for a home in Fulham was £1,186,510 and we have observed that prices have been relatively static in the first half of 2025.
There are currently around 60 houses that are on the open market for sale in Fulham above £3m. The greatest demand is for period terraced houses, with between four and six bedrooms, that are close to Parsons Green or Bishops Park.”
Notting Hill (W11)
Hannah Aykroyd, Managing Director at Aykroyd & Co., says:
“Notting Hill continues to be a firm favourite among our clients, drawn by its vibrant, ever-evolving character, iconic white, stucco architecture, and abundance of private communal gardens. This enduring appeal ensures the area remains one of the most sought-after in prime London.
Pricing across the Notting Hill market has softened by 7.6% compared to this time last year. However, transaction levels have risen by 16%, reflecting renewed activity and interest. Buyers are currently negotiating average discounts of 8.2% off initial asking prices.
The market for larger homes remains the most robust, with four-bedroom houses achieving an average of £2,536 per square foot. Demand is strongest for turnkey, exceptional family houses, which can command significantly higher premiums due to their rarity.
The recent change in interest rates has provided a degree of renewed confidence, particularly in the sub-£10m market, with notable momentum in the sub-£5m range. This has brought a wave of first-time buyers into the market, particularly for flats and smaller houses.”
Kensington (W8)
Pete Bevan, Co-head of prime central London at Savills, says:
“In the last few months, our Kensington team has sold to buyers from North America, Asia Pacific, the Middle East and Europe, and several of their recent sales have been in conjunction with our new homes and international desks.
Meanwhile, activity across the family-house market has been largely driven by domestic buyers searching for a home in one of Kensington’s key addresses, who are taking a long-term view. These are people who are extremely familiar with the area and have always viewed Kensington as their preferred London location; they know the best streets, addresses and units within developments so when properties have come to market, they have chosen to make a move.
Interestingly, there has also been rising interest from people looking for pied-a-terre properties, and well-presented flats in portered buildings have sold well. We have seen some strong prices achieved for turnkey stock and in some cases, competition among buyers recognising the rarity of an asset coming to market.
Buyers are drawn to Kensington because it retains a community feel; it’s a discreet prime central London neighbourhood where people can access green space, fantastic schooling, shopping and dining. The lifestyle package coupled with the range of housing stock from period to newbuild has been a major factor in these deals taking place across all market segments.”
