Prime Central London
Residential market update
For more property insight and professional advice on your home and the local market, your local Carter Jonas team are here to support you. Contact us or pop in to your local office to chat to the team.
020 7529 1538
Leslie Schroeder
Head of Residential Research
Email
020 7493 0676
Email
Samuel Richardson
Head of Sales, Mayfair
020 7493 0676
Email
Victoria Boyson
Head of Lettings, Mayfair
With an average property price just exceeding £1.16 million, Prime Central London remains one of the most dynamic and high-calibre markets in the world. This headline average, however, is influenced by the immense variety of available stock, as pricing depends significantly on the property’s size, precise location, specification, and individual features.
AUTUMN 2025
Residential market activity is slowly beginning to bounce back toward normal levels following the April 1st stamp duty changes. However, two factors: general economic uncertainty and global geopolitical concerns, are slightly dampening the market and restraining growth. The primary constraint is stretched affordability, as wage growth has lagged behind house price increases over the last 5-10 years. Nevertheless, buyer demand remains resilient. Given the expectation of at least one more interest rate cut in the next 6-12 months, we forecast consistent sales and price growth at a more sustainable rate of 1.5-2.5% in 2026.
Although the current figures are showing a strong average price reduction over the last 12 months, it is important to recognise that the Prime Central London market is characterised by strong price volatility. This means that the sale of a few unique, high-value (or lower-value) properties can disproportionately influence the average, masking the underlying stability and positive demand in the market.
In the rental market, average rents in Prime Central London are £3,414 per calendar month. This follows rapid rental growth of almost 30% over the last three years with strong tenant demand and a tight supply of available rental properties.
Average property price
PRIME LONDON:
GREATER LONDON:
£1,169,081
£561,587
Average rental price (pcm)
Key indicators
SALES
LETTINGS
£3,414
£2,253
PRIME LONDON:
GREATER LONDON:
1.16m
30%
Data dashboard
SALES market
rental market
12 months ago
curreNT
3,993
3,221
Properties available monthly
267
148
Properties sold
monthly
3.13%
2.75%
Average discount on initial asking price
93
74
Average days on the market
curreNT
12 months ago
£3,263
£3,414
Average rental price (pcm)
6,108
6,404
Properties available monthly
32
35
Average days on the market
Average monthly mortgage repayment**
(assume average house price of £1,169,081)
2.50%
2.90%
3.67%
2026
2028
2030
Interest rate forecasts
£5,484
£4,975
£4,458
4.43%*
3.5%
£5,356
4.2%
£4,712
3.0%
2.5%
6.2%
5.3%
2.3%
2026
2028
2030
UK
house price growth
6.5%
5.6%
1.5%
2026
2028
2030
Greater London house price growth
6.5%
5.6%
1.6%
2026
2028
2030
Prime Central London house price growth
Forecasts
020 7299 2447
Email
David Ornsby
Partner, Lettings, Marylebone
020 7590 4696
Email
Lajla Turner
Partner, Lettings, Kensington & Chelsea
Example mortgage rate
Sources used: Carter Jonas Research, HM Land Registry, ONS Price Index of Private Rents, Oxford Economics (forecasts), REalyse (data dashboard, 12-month rolling averages)
* Average rate at early October 2025
**Average monthly mortgage repayments: 25 year period, 15% deposit. Mortgage rates are not forecasts but examples and are for illustrative purposes only.
We’re looking at what’s driving the property market right now and how it’s playing out in your area. Read our Autumn/Winter 2025 local market report for the latest property data and insight.