Activity across the prime London housing market improved slightly in April following a subdued first quarter although pricing pressure and elevated levels of withdrawals and price reductions continue to reflect ongoing market uncertainty, according to new analysis from LonRes.
The independent property analyst found that sales transactions across prime London increased by 2.1% annually in April and were broadly in line with the long-term average for the month.
However, average achieved sale prices fell by 5.5% compared with April 2025 and remain 5.6% below pre-pandemic levels recorded between 2017 and 2019.
Stock levels also remain elevated. The number of homes available for sale across prime London at the end of April was 8.6% higher than a year earlier, despite falling slightly from the September 2025 peak.
PRICING PRESSURE
At the same time, new sales instructions were down 1.8% annually, although still 27.4% above pre-pandemic averages.
LonRes also reported continued pressure on pricing, with the number of price reductions rising by 19.4% year-on-year. So far in 2026, 54% of all sold properties across prime London required at least one price reduction before selling — the highest proportion on record for the market.
The average discount from initial asking price reached 10.6% in April, the highest level for seven years.
The super-prime £5m-plus market also remained subdued, with transaction volumes down 6.3% annually, although under-offer numbers and new instructions suggested some resilience at the top end of the market.
LETTINGS SECTOR
In the lettings sector, rental values across prime London fell by 1.0% annually in April, continuing a pattern of subdued rental growth seen since early 2024.
Prime central London underperformed the wider market, with rents in the area declining by 2.6% year-on-year.
Despite weaker rental growth, activity levels improved. Lets agreed rose by 19.2% annually, while new rental instructions increased by 31.4%.
Available rental stock across prime London also increased by 17.5% compared with a year earlier.
UNCERTAIN MARKET
Nick Gregori, Head of Research at LonRes, says: “After a poor first quarter of the year, April saw some tentative signs of improvement in the prime London sales market, both in our data and based on feedback from agents.
“But the general background of economic weakness and political instability – now at home as well as internationally – continues to contribute to an uncertain market and limit the prospect of a more sustained recovery.”
He adds: “Agents reported feeling a bit more positive, noting an increase in buyer interest feeding through into offers and deals – and the data backs this up. After months of rising under offer numbers, we finally saw this translate into an increase in transactions, albeit a slight one.
“Values continued to fall on an annual basis, but the latest data suggested they might be bottoming out.”
VOTE OF CONFIDENCE
Commenting on the super-prime market, Gregori says: “The top end of the market has been slowing for a while, but the second half of April saw a flurry of significant deals, including a number at prices north of £25m.
“Clearly the market remains tricky but this is a much-needed vote of confidence, and the £5m+ market more widely recorded a balanced set of data in April.”
Turning to lettings, he said: “The prime London lettings market saw rents fall slightly in April, continuing a pattern of relatively small movements stretching back to early 2024.
“Looking ahead, the Renters’ Rights Act could start to have an impact on rents, with asking prices likely to rise as bidding wars are banned and rent increases more limited.”
