31st October 2025
8mins
Serious sellers have been slashing asking prices in record numbers as the property market falters ahead of the Autumn budget. “There has been so much kite flying, that buyers don’t know which way to turn,” said Camilla Dell, managing partner of Black Brick.
Partly as a result of the current market, impasse property analyst ‘TwentiCi’, reports that in Inner London, more than 86,000 homes have had prices cut so far this year, compared to 67,000 last year, a jump of 25 per cent.
This is clearly rather good news for buyers – the last two homes Black Brick acquired for clients, were bought at substantial discounts (see below for more details). “Because there has been little or no price growth, anyone who has bought since 2014 is selling at a loss,” said Dell. “If they are serious about selling, they recognise that the market is down since the peak and therefore they are not going to get their costs back.”
Dell said that current buyers fall into two camps: some are pressing to get contracts signed pre-budget, because right now they have certainty over issues of tax and costs. Others are waiting before acting. She believes that all transactions which are still going on after D-day, November 26, will be impacted if significant changes are announced.
“It will cause people to take a pause, work out what it means for them, and then decide whether to proceed, withdraw, or renegotiate,” she said.
The travails of prime central London (PCL), and the comparatively strong performance of prime outer postcodes, is creating a unique dilemma for buyers.
Once the price gap between buying a home in a smart part of PCL versus an excellent, but less prestigious neighbourhood a little further out, was yawning. But the 20 per cent fall in prime sale prices in the past decade, has significantly closed the gap according to Stuart Bailey, head of PCL sales at Knight Frank.
He blames the downturn on hefty transaction costs. But he says that the cut in prices is finally starting to make buyers re-examine the benefits of a London property. In Chelsea, for example, median sale prices have fallen from £1,359 per sq ft in 2015 to £1,182 per sq ft in 2025. Back in 2015, homes in Chelsea were 47 per cent more expensive than those in neighbouring Fulham. Today, that premium has been more than halved to 21 per cent, opening up once unaffordable postcodes to a wider range of buyers.
“PCL certainly looks like good value compared to the peak of the market,” said Dell. “We are seeing some of our clients opt to buy in more prestigious postcodes as their budgets can go further than before.”
With domestic buyers firmly in the PCL driving seat, Kensington has emerged as the top neighbourhood for big-ticket purchases, toppling Chelsea and Belgravia from the top spot for the first time in five years.
More than one in ten £5m-plus sales (12 per cent), made in the third quarter of the year, were in London W8, according to new figures from estate agent Savills – although, across the board, the number of sales in this price bracket are down almost 20 per cent compared to the same period last year.
Dell suspects Kensington’s gorgeous architecture, its proximity to Hyde Park, and good schools are behind its rise.
“The Royal Borough has cachet,” she added. “People may have a sense of nostalgia about Kensington High Street and want to be close to it. “There is quite a concentration of luxury new builds – Holland Park Gate, Lancer Square, and the forthcoming redevelopment of the Odeon Cinema for example. And Kensington has some of the most beautiful, desirable streets in London.”
Kensington is also a highly versatile postcode, with plenty of good quality flats – both new and in mansion blocks – for those seeking pieds-a-terre, as well as family sized houses.
One of London’s highest profile ultra-luxe developments, is moving towards completion.
And it has been announced that the £2bn, 1 Mayfair development, masterminded by billionaire businessman John Caudwell, will be managed by Dorchester Collection, which will also run concierge and hotel-style services, ranging from bed changing to pet walking to flower arranging.
Owners of its 24 residences will have access to an on-site spa and will also be able to make priority reservations at The Dorchester’s restaurants, bars, and spa.
1 Mayfair is not scheduled for completion until 2027, and prices are estimated to start at £35m.
This might sound punchy – even for PCL – but high demand for branded residences is a strong global phenomenon. According to Knight Frank’s The Global Branded Residence Survey 2025, the number of individual schemes has exploded from 169 in 2011, to 611 today. By 2030, there could be more than 1,600.
Estate agent Savills estimates buyers of branded residences pay a 33 per premium compared to local prices, not to mention average service charges of £15 to £20 per sq ft in London. But it predicts that as the global economy continues to create millionaires and billionaires with international lifestyles, demand will continue to grow.
“A lot of ultra-high net worth individuals feel very loyal to some of these brands,” said Dell. “When One Hyde Park launched, one of London’s first branded residences, we had a Middle Eastern buyer who was really attracted by the Mandarin Oriental brand. If you know a brand, have stayed in their hotels globally, buying feels like less of a risk, especially if you are buying off plan.”
London’s branded residences are exclusively backed by hotel brands. However, in Miami and Dubai, you are increasingly likely to find residences marketed in collaboration with a car marque or fashion label.
Dell has her doubts about whether these sorts of affiliations are worth investing in. “It is a gimmick,” she warned. “They don’t know anything about hospitality.”
Dell also sees a divide between residences with an on-site hotel – like the Raffles London at the Old War Office, Six Senses at The Whiteley and The Peninsula Hotel and Residences – and stand-alone buildings. The former, she feels, will have a more elevated, seamless standard of service for those who want a home with a really 5* feel.
Even in a flagging property market, a really special home will find a buyer. And while many buyers are sitting on the fence until the contents of the forthcoming budget are clear, that didn’t stop a bun fight over the Belgravia apartment which belonged to the late Fleetwood Mac singer Christine McVie and went up for sale in March for £6.95m.
The Eaton Place penthouse in Belgravia took three months to find a buyer, after more than 2,000 online views and multiple offers. The sale, to a young European couple, was completed last month.
There were many things to admire about this property: its location, architecture, great light, and high ceilings, and its rooftop garden. Wisely, before it went on sale, its interiors were updated.
Dell said most current buyers are looking for a turnkey property. “The appetite for a complete project is low,” she said. “A beautifully, thoughtfully interior designed property – not just a boring developer finish – can make a real difference.”
There is a caveat here though: buyer beware. It is all too easy to be so enraptured by a stylish finish that you overlook serious issues with a property. “Don’t be blinded by design,” said Dell.
Family buyers currently dominate the central London property market and our clients came to us because they needed to upsize and also wanted to move closer to their children’s school.
Because family houses are in high demand, there is often competition for the best homes. Despite this, Black Brick found the family a beautiful period house which ticked every box – an ideal location, off-street parking, a mature, 50 ft south-facing garden, and four generous bedrooms.
It is doubtful they would have found it alone, since it was not listed on the open market.
Happily, our timing was impeccable. The house had been rented out to the same family for several years but they had decided to move on and the owner was keen to sell and agreed to take £250,000 off the asking price in order to seal the deal.
Decisive action was required to secure this London apartment for our North American-based clients.
They had outgrown their previous home in the British capital and were looking to upsize into a secure, three bedroom, two bathroom home – but their budget was tight for PCL.
We were aware of an ideal property. The only problem was that it was already under offer, and had been so for a significant period of time. We maintained close contact with the selling agent and when the sale fell through, we were the first to know. We went straight in and, after negotiations, secured the apartment with a nine per cent discount against asking price.
We also helped our clients sell their old flat and found them an interior designer to help upgrade their new home.
We would be delighted to hear from you to discuss your own property requirements. For a non-obligatory consultation, please contact us.
