Average property prices in Prime Central London (PCL) have fallen by 23% since their peak in mid-2015, Knight Frank's latest data indicates. This decline is attributed to a series of tax increases and political uncertainty.
In the year to July 2026, PCL property prices saw a 3.3% decrease, extending a trend of annual declines to 39 consecutive months. While prices rose modestly for two years until April 2023, this followed a 59-month period of declines from June 2016.
When accounting for cumulative UK CPI inflation of 42% between mid-2015 and mid-2026, a property bought for £1 million in PCL in mid-2015 would now be worth £770,000, instead of an inflation-adjusted £1.42 million. This means that, when adjusted for inflation, property prices are almost 46% cheaper than they were 11 years ago.
Tom Bill, head of UK residential research at Knight Frank, noted that the prime London market is performing better than in 2025, with transactions across the capital up 14% in the three months to July, and 3% in PCL. He added that buyers are increasingly considering refurbishment projects due to a shortage of exceptional properties.