We are currently seeing a shift in the Prime London property market, with a significant increase in sales supply while rental activity slows. The latest LonRes data highlights a notable rise in new sales listings, alongside price reductions on established properties, indicating a dynamic and evolving landscape for buyers and sellers alike.
Sales Market: Increased Supply, Stable Demand
The number of new instructions in Week 07 of 2025 was 19% higher than the same period in 2024, contributing to a 15% increase in year-to-date listings. This influx of supply provides buyers with more options, but transaction levels have yet to match the increase. While weekly Sales Agreed rose by 7.4%, the cumulative total for 2025 remains down by 8.1% compared to last year.
Key Sales Market Stats (Week 07, 2025):
- Sales Agreed: +7.4% (weekly change), unchanged year-on-year
- Year-to-date Sales Agreed: -8.1% vs. 2024
- New Instructions: -8.2% (weekly change), +19.0% year-on-year
- Year-to-date New Instructions: +14.8% vs. 2024
This trend suggests that while more properties are coming onto the market, buyers remain measured in their approach, potentially capitalising on price reductions and market adjustments.
Rental Market: A Noticeable Slowdown
In contrast to the sales market, the rental sector has seen a marked decline in activity. There are fewer rental properties available, and fewer agreements being finalised, pointing to a cooling in demand. Year-to-date lets agreed are down by 23.9% compared to 2024, while new rental instructions have fallen by 20.4% over the same period.
Key Rental Market Stats (Week 07, 2025):
- Lets Agreed: -23.7% (weekly change), -51.1% year-on-year
- Year-to-date Lets Agreed: -23.9% vs. 2024
- New Instructions: -9.7% (weekly change), -20.5% year-on-year
- Year-to-date New Instructions: -20.4% vs. 2024
Market Outlook
With an increase in sales supply and stabilising demand, buyers in Prime London have more negotiating power than in previous years. Meanwhile, the rental market’s decline in activity may indicate a shift in tenant priorities or affordability concerns. At Winkworth, we’re committed to helping our clients navigate these changes. Whether you’re buying, selling, renting, or letting, our expertise in Prime London’s property market ensures you stay ahead of the curve. Get in touch with our team to explore the latest opportunities in London’s evolving property landscape.
Sources: Lonres, Primeresi
