"The prime London market is world-renowned, and so the current slide in sold prices is very much a transactional issue and certainly not one that reflects an actual drop in values"
- Damien Jefferies - Jefferies James
Average sold prices across some of prime London’s most desirable neighbourhoods have dropped sharply since the start of 2025, according to new analysis by Jefferies London.
The data, which draws from Land Registry records, compares transactions completed in the year to date with the same period in 2024. While all six areas analysed saw year-on-year declines, some were notably steeper than others.
Mayfair recorded the most dramatic shift, with the average sold price falling to £1.5 million — a 60% drop compared to the same timeframe last year. Chelsea also saw a substantial decline, with prices down 47%. Meanwhile, Belgravia and Westminster saw falls of 44% and 28%, respectively.
Kensington and Hampstead experienced less pronounced drops, although both still posted year-on-year decreases of more than 20%, down 21% and 23%, respectively. Across all six areas, only two now retain average sold prices above £1 million.
“The prime London market is world-renowned, and so the current slide in sold prices is very much a transactional issue and certainly not one that reflects an actual drop in values," comments Damien Jefferies, founder of Jefferies London. "In a market that operates very much on a quality over quantity basis, a single transaction can dramatically change the picture. For example, as recently as 2023, we saw notable sales to the tune of £21.5m in Kensington Palace Gardens, £20.4m in Queen Anne’s Gate and £12m on Park Lane, all of which would have a significant impact on overall market values.”
He continued, “As it stands, we’re simply not seeing these big-ticket purchases in the current market, and whilst properties are transacting, they are doing so at the lower tiers of the market. That’s not to say that we aren’t seeing strong interest from prime London homebuyers and, as the market continues to settle over the remainder of the year, we expect this interest to start to convert, cultivating sold price values in the process.”
While these headline figures point to a cooling in top-end property sales, Jefferies argues the figures reflect a temporary imbalance in transaction types rather than a broader depreciation in value. The absence of high-value sales has disproportionately pulled down average prices, particularly in a segment of the market where individual transactions can heavily skew data.
