London Property Market Outlook 2025

After a period of recalibration, London's prime property market is entering 2025 with renewed momentum. Here's our assessment of the key drivers.

Interest Rate Environment

The Bank of England's base rate has been on a downward trajectory, and further cuts are anticipated through 2025. This improvement in mortgage affordability is bringing buyers back to the market, particularly in the £750k–£2m bracket where the impact of rate rises was most acutely felt.

Buyer Demand

Registered buyer numbers with our offices are up 28% year-on-year. The pipeline of quality stock remains constrained, which is creating competition for well-presented, well-priced properties — particularly in inner London postcodes.

Price Outlook

We anticipate modest price growth across prime London in 2025, with the best-performing sectors being: - Period family homes in established conservation areas - Luxury new-build developments in Zone 1–2 locations - High-quality rental stock, driven by continued tenant demand

Opportunities for Buyers

The current market presents an opportunity for buyers who have been waiting. While prices are recovering, they remain below the 2022 peak in some areas. Competition is increasing but has not yet reached the frenzy of 2021.

Advice for Sellers

Sellers who present their properties well and price realistically are achieving strong results. The era of simply listing and waiting is over — active marketing and excellent photography are essential.