9th October 2025
6mins
It has been a challenging few years for Prime Central London (PCL). But despite a barrage of global and national headwinds putting the brakes on price growth, London retains its status as one of the most desirable cities to live in in the world.
The British capital was named the world’s leading city according to branding and marketing firm Resonance’s 2025 World’s Best Cities report, which ranks cities according to their “liveability, lovability, and prosperity.” London’s history, culture, food, nightlife and transport links have won it top spot in the study every year for the past decade, beating out Paris, Tokyo, New York and all the rest.
PCL is usually defined as the neighbourhoods encircling Hyde Park. And since 2014, signs of price growth have been in very short supply. Many factors conspired against PCL — from successive increases in Stamp Duty, to the decision to leave the European Union, the pandemic, rising interest rates, and global geopolitical strife. The result is that halfway through 2025, average prices in PCL stood 22.4 per cent below the 2014 peak, according to research by Savills. The latest UK House Price Index found that the average sale price of homes in Kensington & Chelsea, London’s most expensive borough, stood at £1.46m, while the average home in Westminster was trading for just over £1m.
Looking forward, estate agent Knight Frank has downgraded its annual growth report for the year, predicting prices will fall 4 per cent in PCL by the end of 2025, down from 0 per cent. Next year is expected to be flat, with growth returning in 2027 at 3 per cent. By 2029, Knight Frank forecasts five-year cumulative growth of 10 per cent.
According to the latest research by central London property analyst LonRes, the number of new instructions in PCL has increased by more than 22 per cent over the past year, creating a more competitive market than has been seen for years. Not only are vendors having to become more realistic about list prices, but those committed to selling also need to be willing to negotiate.
LonRes calculates that the average discount on asking price in central London currently stands at 9.3 per cent, with bigger discounts than the norm in blue chip PCL neighbourhoods. In Mayfair and St James’s, owners are shaving an average 15 per cent from their asking prices. In Knightsbridge and Belgravia, the average discount is 12.5 per cent. Black Brick recently helped clients negotiate the purchase of an apartment on Cadogan Gardens, one of PCL’s finest squares. Originally on the market for £6m, the deal was agreed for less than £5.2m: Cadogan Gardens Case Study
Buyers in 2025 tend to be looking for full-time family homes rather than additions to global property portfolios. Spacious houses are selling better than pied-à-terres. Because construction costs have risen sharply since the pandemic, fewer buyers are willing to take on a project property — and turnkey homes continue to command premium prices.
While domestic buyers currently drive the London market, international demand remains strong, particularly from Americans seeking a safe haven from political uncertainty in the USA. Recent high-profile purchases include: former Google chief Eric Schmidt’s £42m Holland Park villa, and The Holme, a £139m Regent’s Park mansion said to have been bought by an American tech billionaire.
The pandemic continues to shape how buyers choose neighbourhoods. Alongside good transport links, buyers now prioritise walkable amenities — vibrant high streets with cafés, shops, arts venues, and a strong sense of community.
This is one reason why South Kensington has emerged as a bright spot in PCL this year, with prices rising 4 per cent in the first eight months of 2025 to £1,601 per sq ft. It offers proximity to Hyde Park, a lively café and restaurant scene, good schools, and a must-visit farmer’s market.
In prime outer London, family buyers are driving demand in neighbourhoods with top-performing schools and green space. Key examples include St John’s Wood (home to the American School in London), Dulwich in south-east London, and Hampstead and Highgate in the north. All combine education, greenery, and vibrant local life.
Although the London prime property market is slow, price negotiations remain delicate and require expertise. Serious buyers are outnumbered by available homes, and around a third of sales are concluded “off market” — never appearing on property portals. (Learn more about London’s grey property market here: Buying Off Market)
Even if you find a property you love, London’s complexities — from micro-neighbourhood quirks to hidden issues like tube noise — mean that specialist knowledge is vital. Selling agents work for the vendor, so buyers may not always get the full picture unless they ask the right questions. Using a trusted buying agent like Black Brick ensures you navigate London’s often-bewildering property market safely and strategically. (Read more about Black Brick’s accolades here: Awards)
We would be delighted to hear from you to discuss your own property requirements. For a non-obligatory consultation, please contact us.
