"Discounts in London have been widely reported, but less has been said about the opportunity for buyers in traditional country and coastal honeypot markets"
- Lucian Cook - Savills
Buyers across the UK’s prime housing markets are capitalising on falling values, taking advantage of a less competitive landscape to secure high-end properties at reduced prices, according to new research from Savills.
In prime central London, values dropped by 3.7% in the year to June 2025, as recent tax changes reshaped demand and led to a more price-sensitive buyer profile. Prices in the area are now 22.4% below their 2014 peak.
Across the broader prime markets outside the capital, values fell by 1.9% in Q2, reflecting continued adjustments following the post-pandemic boom. Annual prices are down by 2.7% overall, with the steepest falls recorded in coastal hotspots and the outer commuter belt. However, values in Scotland and the north of England remained more stable, with annual growth of 0.1% and 0.7% respectively.
“On the ground, we have seen the number of movers from London slip back as the commuter belt contracts and demand is more focused on London’s suburban markets,” said Lucian Cook, head of residential research at Savills. “This, combined with greater economic uncertainty and concern over tax among discretionary buyers, has created a classic buyers’ market, with more stock available to choose from and less competition. That being said, the number of properties going under offer across the board remains higher than last year, as needs-based buyers continue to drive momentum.”
The impact of shifting sentiment has been most apparent in the traditional country house market, where prices have dropped by 6.2% over the past year. These properties, typically priced above £3 million, had previously seen strong growth during the pandemic.
Coastal markets have also seen sharp declines. Increases in council tax and stamp duty surcharges contributed to average price falls of 6.7% over the past 12 months. Values in these areas have now dropped 15.7% from their peak in late 2022.
“Discounts in London have been widely reported, but less has been said about the opportunity for buyers in traditional country and coastal honeypot markets,” Cook noted. “Recent buyers have been able to secure a prime family house in the South of England with up to six bedrooms for an average of £2.4 million. That is on average £280,000 less than they could at the market peak in September 2022.”
Within prime central London, further quarterly falls of 1.5% have added to existing value, bringing some buyers back to the market despite caution around taxation policy.
“Following tax changes introduced at the last budget, there has been a smaller pool of increasingly price-sensitive buyers,” explained Alex Christian, director and co-head of Savills Private Office. “Importantly, we haven’t seen a flood of new stock, but properties are typically remaining on the market for longer as buyers bide their time, with some weighing up options amidst early speculation around changes to some elements of non-dom policy.
Increasingly, we are seeing buyers recognise the historic value on offer. In particular, domestic buyers purchasing a main residence make up a larger proportion of our buyers.”
In contrast to the broader market, several areas in south-west London have shown resilience. Neighbourhoods such as Clapham, Putney and Wimbledon have held their value, supported by mortgage market stability and a reduced appetite to relocate as office return policies become more common.
