London Property Market Update: September 2025

The London property market remains one of the most closely watched in the world, and as we move through the second half of 2025, several interesting dynamics are shaping the outlook. Recent analysis from Savills highlights where values are shifting, where demand is strongest, and how buyer behaviour is evolving.

Prime Central London Still Below Peak

Values in prime central London remain well below their 2014 peak—down around 22%—which continues to create opportunities for buyers with a long-term view. While prices edged down slightly again in the first quarter of 2025 (–0.7%), the overall picture is one of a market that has adjusted significantly from its highs and is now showing signs of greater stability.

Activity in the £5M+ Bracket

One of the standout stories from late 2024 and early 2025 was the increase in transactions over £5 million. This segment of the market appears to be benefitting from renewed confidence among domestic and international buyers, even as other parts of the market remain subdued. For investors, this suggests that the ultra-prime end may be leading the way in recovery.

Londoners Staying Put

Another notable trend is that Londoners are buying fewer properties outside the capital than at any point since 2013. Just 5.3% of Londoners purchased outside the city this year, compared with much higher proportions in the years immediately following the pandemic. With more people back in the office and London prices having corrected, the motivation to move further afield has eased.

Outlook

London’s property market continues to present a mixed picture: values in prime areas remain attractive for buyers compared with a decade ago, ultra-prime is showing resilience, and rental growth highlights ongoing demand for well-placed homes and offices. The next year will likely see steady conditions rather than dramatic swings, but the medium-term outlook remains positive.