Shock 60% fall in prime London property sale prices
Upmarket London estate agent claims there are ‘no big-ticket purchases’ happening in prime Central London and sales prices have fallen substantially since 2024.
The value of properties sold in London’s six most desirable boroughs has dropped by as much as 60% over the last 12 months, according to analysis carried out by Jefferies London, a problem that others have pinned on the ending of the UK’s generous ‘non-dom’ tax rules.
The estate agency used data from the Land Registry in their research and founder, Damien Jefferies (pictured), says that although they found falls in all the boroughs they researched, some were more significant than others.
Mayfair down most
Mayfair topped the list, where the average price of homes sold this year is £1.5m. Jeffries explains that, even though it would seem to be a lot of money, it represents a 60% fall when compared to the average sold price in 2024.
Chelsea is next at 47% down, whilst Belgravia (-44%) and Westminster (-28%) have also seen notable falls.
And even though Kensington (-21%) and Hampstead (-23%) are at the bottom of the list, both areas have still seen sold prices drop by around a fifth.
Perhaps more telling, Jeffries adds, is that of the six prime neighbourhoods analysed, just two are home to an average sold price north of the £1m mark.
As it stands, we’re simply not seeing these big-ticket purchases in the current market.”
Jefferies says: “The prime London market is world-renowned and so the current slide in sold prices is very much a transactional issue and certainly not one that reflects an actual drop in values.
“In a market that operates very much on a quality over quantity basis, a single transaction can dramatically change the picture.
“For example, as recently as 2023 we saw notable sales to the tune of £21.5m in Kensington Palace Gardens, £20.4m in Queen Anne’s Gate and £12m in Park Lane, all of which would have a significant impact on overall market values.
“As it stands, we’re simply not seeing these big-ticket purchases in the current market and, whilst properties are transacting, they are doing so at the lower tiers of the market.
“That’s not to say that we aren’t seeing strong interest from prime London homebuyers and, as the market continues to settle over the remainder of the year, we expect this interest to start to convert, cultivating sold price values in the process.”
