London's prime property market is showing signs of life, with sales activity picking up in June - albeit driven by desperate sellers accepting lower and lower prices. Despite this glimmer of hope, average values remain 8.2% below last year's levels and 5.5% shy of pre-pandemic averages (2017-2019), highlighting the market's ongoing struggles.
According to LonRes, while annual price drops appear to be accelerating, monthly movements have been relatively stable this year. This suggests that stronger comparisons with the previous year are driving down values, rather than a sharp decline in current conditions.
The scale of pricing pressure is stark: in June, sellers accepted an average discount of 10.4% from their initial asking price - a record high. More than half (50.5%) of all completed sales had undergone at least one price reduction before being sold, with the number of reductions soaring by 21.2% compared to June 2025.
Despite these challenges, sales are up: transactions in June were 4.8% higher year-on-year and 14% above pre-pandemic levels. The number of properties going under offer also rose by 4.8%, while available stock climbed 3.1% year-on-year.
New instructions increased by 2.2% compared to last June, but the market remains subdued overall: prime London sales are down 12.7% in the first half of this year compared to the same period in 2025. Some sellers, unwilling to accept lower offers, have chosen to withdraw their properties from the market - a decision that has pushed withdrawals up by 29.4%.
The super-prime market (£5 million+), though experiencing a slight uptick in sales (7.1% year-on-year increase in June), is still feeling the pinch: new instructions fell by 17.3%, while available stock declined as some sellers opted to withdraw their properties rather than cut asking prices - a clear indication that even at the top end, pricing pressures are biting hard.