Prime Central London's spring market is showing encouraging signs of revival, with strategic pricing and international interest creating notable activity despite broader supply increases across the capital.
Market Dynamics: More Supply, Selective Demand
The first ten weeks of 2025 have seen 19% more homes listed for sale within PCL compared to the same period last year, while agreed sales fell by 5%. This shift has created excellent opportunities for well-prepared buyers, particularly in the family home market where demand remains resilient. Transaction data from Q4 2024 showed the highest level of PCL sales in over a decade, with volumes up 23% year-on-year.
This momentum has continued into 2025, with properties under offer increasing by 18.7% in January compared to the previous year – a telling indicator of the market's underlying strength. Our Knightsbridge & Chelsea office has seen sales applicants increase by 2.5 times between December through February 2025 compared to the same period last year. Similarly, the number of offers being made has doubled year-on-year, demonstrating tangible evidence of renewed buyer confidence.
Family Homes Lead the Way
Charles Erwin, Sales Director of Winkworth Notting Hill, has observed strong sales activity: "We saw a notable increase in sales being agreed once the budget had been announced last autumn. With the speculation of that behind them, buyers had the confidence to proceed, and we had a number of notable sales in Q4 2024 and Q1 2025 including a house for £6.35m, a mews and an apartment amongst others."
The family home market is showing particular resilience this spring. "The family home market remains active," he added. "We have a house which has had over 25 viewings so far. We are seeing good activity with quality mews, apartments and family homes, all generally in good condition."
This contrasts with smaller properties, particularly one-bedroom flats, which remains more challenging due to landlords exiting the market to release capital or in response to rental reforms.
The American Influence
A significant factor driving the spring market is increased interest from American buyers and renters alike - the 'try before you buy' effect. Christian Lock-Necrews, Director of Winkworth Knightsbridge & Chelsea, explains: "As US equity markets have corrected in recent weeks due to the tariff war, alongside record numbers of Americans applying for citizenship in the UK, 'bricks and mortar' in Central London is increasingly viewed as a gold standard safe haven."
Strategic Pricing: The Key to Success
For sellers in today's market, realistic pricing from the outset has become essential. "Price is key," emphasizes Erwin. "If property is priced correctly, buyers will offer. If not – they won't." With 44% more properties currently experiencing price reductions compared to early 2024, precision pricing combined with excellent presentation maximizes a property's appeal in an increasingly selective marketplace.
Spring Outlook: Positive Signals
As mortgage rates continue to decrease and international buyer interest grows, the core PCL market is poised for a productive spring season. While overall price growth remains modest (-0.3% in January), this represents the best performance since summer 2023 – a promising indicator for London's prime residential market as we move deeper into 2025.
Sources: Winkworth Research, Lonres, Primeresi, Coutts Bank
