Sales of prime central London housing surged 12% in the first quarter of 2025, as house prices fell amid ongoing global uncertainty. According to new data from property advisory firm JLL, residential activity in the capital rose significantly compared to the previous year, with many buyers and sellers regaining confidence in the market.
Despite a 0.6% fall in average prices over the quarter, and a 3.3% annual decline, the drop in prices has fueled an increase in sales as buyers take advantage of more favorable prices. JLL’s Marcus Dixon noted that a surge in new listings and a growing sense of optimism are helping drive momentum in the market, particularly in prime central areas.
The decline in prices also reflects the broader climate of caution caused by factors like political upheaval and tightening tax regulations, including the unwinding of the ‘non-dom’ status and the increase in stamp duty for second homes. Savills data indicated that prices in prime central London are now 21.2% below their peak in 2014.
As buyers grow more cautious, the London property market continues to attract interest as a “safe haven” for capital, especially as global economic uncertainties persist. Dixon suggested that while some prospective buyers are waiting for clearer economic signals, the capital remains well-positioned to benefit from increasing foreign investment in 2025. With sales rising, London’s real estate market is showing signs of resilience, even as the broader economic landscape remains uncertain.
