"There are clear signs of renewed confidence across Prime Central London, with robust sales activity and a rise in new listings building positive momentum"
- Marcus Dixon - JLL
The Prime Central London residential property market showed signs of renewed momentum in Q1 2025, with the number of homes sold rising by 12.8% compared to the same period in 2024, according to the latest research from global property consultancy JLL.
This uptick in transactions has been driven by a noticeable return of sellers to the market, offering buyers a broader selection. As of early April, the number of homes listed for sale was 9.7% higher than the same time last year. Despite this increase in supply, price sensitivity remains a key feature of the market. Average home prices across PCL declined by 0.6% over the quarter and by 3.3% year-on-year, as buyers continue to negotiate hard amid ongoing economic uncertainty.
However, not all price points have felt the same downward pressure. The ultra-prime segment—homes priced over £10 million, demonstrated resilience, with prices rising by 1.1% year-on-year in Q1. Meanwhile, improving sentiment at the lower end of the market saw transaction volumes for homes under £2 million increase by more than 20% annually, outperforming the five-year Q1 average by 11%.
Even with recent fluctuations in US dollar to sterling exchange rates—driven by concerns around tariffs—buyers using dollar or dollar-pegged currencies continue to benefit from significant discounts when purchasing London property.
Lettings market
The lettings market echoed similar dynamics, with activity strongest at both the lower and higher ends of the pricing spectrum. One-bedroom flats saw annual rental growth of 3.1%, while the number of high-end properties (rented for over £3,000 per week) rose by 7.1% compared to Q1 2024. Overall, average rents nudged up by 0.1% over the quarter and 2% year-on-year. However, limited supply continues to support prices, with rental listings down 13.1% compared to last year and 34% below levels seen five years ago.
“There are clear signs of renewed confidence across Prime Central London, with robust sales activity and a rise in new listings building positive momentum," explained Marcus Dixon, Director of UK Residential Research at JLL, "Both domestic and international buyers are active, taking advantage of opportunities in the market. However, sellers need to remain realistic with pricing, as buyers are still approaching with caution,"
“While global economic uncertainty is causing some would-be buyers to delay decisions—opting to rent in the short term—others are increasingly seeking out London’s reputation as a stable, tangible safe-haven asset. As 2025 progresses, the capital is well positioned to attract a fresh wave of overseas investment.”
