According to the private bank’s latest assessment of the prime London market, performance across the capital continues to vary significantly by location, with buyers increasingly favouring lifestyle-led outer prime districts over some of the more traditional central enclaves.
While parts of Prime Central London continue to face pricing pressure and slower transaction levels, a number of outer prime markets have shown notable resilience. Areas such as Battersea, Clapham and Wandsworth achieved record average values during the first quarter, contrasting sharply with districts including Chelsea and South Kensington, where values remain substantially below peak levels.
The bank noted that the market is currently undergoing a period of repricing rather than outright decline, as both buyers and sellers adjust expectations following a subdued end to 2025.
Across Prime London as a whole, prices fell by 3.2% during the first quarter, leaving values 2.7% lower year-on-year and approximately 13% below historic highs. In practical terms, the bank observed that average values are now broadly comparable to levels seen over a decade ago, underlining the prolonged underperformance of several core central London markets.
Among the areas identified as offering particularly compelling value were Chelsea, where prices are estimated to sit around 23% below peak, and South Kensington at roughly 22% below previous highs.
By contrast, Battersea, Clapham and Wandsworth recorded average pricing of £962 per sq ft in Q1 — the highest level on record for the area. Wimbledon, Richmond, Putney and Barnes also continued to perform steadily, with pricing now sitting only marginally below peak levels.
Discounting reaches highest levels in years
The report also highlighted a widening gap between buyer expectations and vendor aspirations, with average discounts increasing to their highest point in seven years.
During Q1, more than half of all prime listings underwent price reductions, while over 80% of completed transactions achieved below asking price. Average discounts across Prime London reached 11.9%.
The deepest levels of discounting were concentrated within Prime Central London districts, particularly Bayswater & Maida Vale and South Kensington. Conversely, more domestic, family-driven markets such as Wimbledon, Richmond, Putney & Barnes, along with Hampstead & Highgate, continued to see relatively limited discounting and stronger competitive demand.
Activity remains selective across the capital
Transaction volumes during the first quarter were subdued and remained below the same period last year. However, the number of homes currently under offer reached its strongest Q1 level in over ten years, suggesting a degree of momentum returning to the market after an exceptionally quiet close to 2025.
The bank noted that prime London properties are currently taking around six months to sell on average.
Demand was weakest in markets heavily reliant on discretionary international buyers, including Kensington, Notting Hill, Westminster and Victoria. Meanwhile, more needs-driven domestic locations such as Wimbledon, Richmond and Hampstead continued to see improving activity levels.
Super-prime market remains resilient
At the top end of the market, super-prime transaction levels remained broadly consistent with long-term averages. Activity was focused predominantly within Kensington, Belgravia, Knightsbridge, Notting Hill, Holland Park and the Regent’s Park/St John’s Wood market.
One of the quarter’s standout transactions was the reported £265 million sale of Providence House in Chelsea, which Coutts described as a positive indicator of continued confidence at the ultra-prime level despite wider market caution.
Supply levels continue to rise
The report also pointed to a significant increase in available stock, with new instructions rising sharply during Q1 as delayed listings from late 2025 entered the market.
As a result, the volume of homes available for sale across Prime London increased both quarterly and annually, contributing to improved market liquidity and greater choice for buyers heading into the traditionally busier spring and summer period.
Overall, Coutts characterised the current market as balanced rather than overheated, while also noting that recent currency movements continue to make London particularly attractive for dollar-based international purchasers.
The bank concluded that, despite broader geopolitical and economic uncertainty, London continues to be viewed internationally as a stable long-term destination for global wealth and capital.
