Price falls in Prime Central London and for prime properties in suburban areas of the capital are easing.
Savills says that the capital’s more domestic prime housing markets (beyond central London) saw values fall by -0.2% in Q4 (up from -0.7% the previous quarter), while prime regional locations saw values dip -0.6% (vs -1.4% in Q3).
Price falls across Prime Central London have also eased, with values down -0.9% in Q4, compared with falls of -1.8% three months earlier.
That said, prices in the capital’s most traditional prime neighbourhoods remain 24.5% below their peak, meaning that properties in these locations have now lost a quarter of their value since 2014.
| Q4 2025 | PCL | North West | South West | West | North & East | Outer prime London |
| Quarterly growth, Q4 | -0.9% | -0.3% | -0.2% | 0.1% | -0.3% | -0.2% |
| Quarterly growth, Q3 | -1.8% | -1.3% | -0.4% | -0.4% | -0.8% | -0.7% |
| Annual growth | -4.8% | -2.9% | -0.6% | -0.4% | -1.9% | -1.3% |
“Our latest survey of prime buyers and sellers following the Budget shows a shift in confident, with a net 12% more people now committed to moving over the next two years. The biggest lift has been among buyers in the £2m-plus market who had put plans on hold as they braced for the worst,” comments Frances McDonald, director of research at Savills.
“Agents, particularly in outer prime London neighbourhoods, are reporting a pick-up in viewings and exchanges since the Budget announcement. But despite tax changes being ‘better than feared’, demand remains thin on the ground in more rarefied prime central London postcodes, with the pool of buyers already much shallower since the end of the non-dom regime.
“Much of the Budget’s impact on prices had effectively already been built in after rumours started circulating late Summer. But it will take some time for the market to fully absorb the changes, with moderate falls expected to continue in the New Year.”
Properties in Chiswick (1.3%) benefited from the strongest growth in Q4. This market, which is synonymous with £2 million-plus family homes, reported a backlog of buyers bouncing back into action upon the news High Value Council Tax Surcharge would have a more limited impact.
While in Prime Central London, the more domestic neighbourhoods of Marylebone (0.0%), Bayswater (-0.2%) and Notting Hill (0.2%) held up strongest on the quarter, and the year.
This article is taken from Landlord Today