Back to all Blog 09 June 2025

Reality bites in Prime Central London as buyers step back & sellers cut prices

Recent tax changes have led to falling sales and downward price pressure across the capital's top postcodes.

Property sales and new buyer numbers have both dropped off significantly in Prime London over recent months according to agents.Sales across the prime postcodes fell by 7% in the six months to May, versus the previous year. Meanwhile, the number of new prospective buyers registering across its network fell by 13%. The downturn is biting hardest in the capital’s most exclusive enclaves. The agency’s price index shows a decline of -2.2% in the year to May across Prime Central London – the steepest annual drop since last August. A quarterly price fall of -1.4% was the widest in almost five years. Prime Outer London markets have fared better, said the report, due to a higher proportion of demand being driven by needs-based and domestic buyers. Average prices rose by 1.1% in the 12 months to May. The government’s much criticised non-dom tax reforms have been a key factor in PCL’s falling sales volumes, according to agents, having boosted the appeal of other countries like Italy – which operates an annual flat tax that ringfences overseas income.

Property News and Blog

Read about our latest property news and get our regular property market updates from the team at Ian Green Residential, including specialist market news for Little Venice, Regent’s Park and St John’s Wood.

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