Sales activity has rebounded across prime London this year, with buyers increasingly choosing to negotiate price rather than walk away from deals, according to data from Knight Frank.
The property consultancy said the number of transactions in Prime Central London (PCL) and Prime Outer London (POL) in the three months to August was 2% higher than the five-year average.
PCL saw a particularly notable improvement, with sales in the three months to August 6% higher than during the same period in 2025.
Buyers are responding differently to uncertainty in the market this year, said Stuart Bailey, head of central London prime sales at Knight Frank.
“The main difference this year is that buyers are using pre-budget speculation and bond market jitters to negotiate a price cut rather than pulling out of the deal entirely,” he said. “The underlying confidence among buyers is there and parts of PCL are very good value.”
Despite the increase in transaction levels, prices remain under pressure. Average PCL prices fell 3.3% in the year to August, and are now 23% lower than they were 11 years ago.
In POL, prices fell 0.4% over the year through August and have fallen 7% over the past decade.
The London rental market has also faced a decline in activity, although this has been broadly offset by a reduction in available supply.
The number of lettings agreed across London in the three months to August was 8% lower than a year earlier, exactly in line with the 8% decline in new listings over the same period.
Rightmove analysis last week found that average asking prices had fallen across 11 of London’s popular commuter belt cities, while prices had risen in hotspots near Glasgow and Manchester.
