Sales across prime London postcodes fell sharply in the second half of 2025 with transaction levels dropping by almost a third as higher interest rates, tax changes and global uncertainty weighed on buyer demand.
Research from Jefferies London shows that average monthly sales across prime areas fell from 1,431 in the first six months of the year to just 987 per month in the second half – a decline of 31%.
The figures highlight the slowdown that has affected prime central London in recent months, with agents reporting longer transaction times, fewer agreed deals and more cautious behaviour among both domestic and overseas buyers.
The data also shows how activity remains uneven across the capital, with only a handful of prime postcodes recording an increase in sales while core central locations saw some of the steepest falls.
CAPITAL POSTCODES
According to the analysis, just three prime postcodes saw activity rise in the second half of 2025, led by W1K covering Mayfair and St James’s, where transactions increased by 25%. WC1N, covering Russell Square, saw an 11.1% rise, while WC1H in the St Pancras area recorded a smaller increase of 4.2%.
By contrast, some of the biggest drops were recorded in traditional prime central districts. WC2B, covering Drury Lane, Kingsway and Aldwych, W1D covering Marylebone, Fitzrovia and Soho, and W1J in Mayfair and St James’s all saw transaction volumes fall by around 60% during the second half of the year.
MARKET DECLINE
Damien Jefferies (main picture, inset), Founder of Jefferies London, says: “Our latest research highlights the extent to which the prime London market declined during the second half of 2025, with transaction volumes falling quite considerably across all but a handful of postcodes.
“This slowdown reflects wider conditions across the prime central London market, where a combination of tax changes, revisions to non-dom rules and a prolonged period of higher interest rates have all weighed heavily on buyer demand.
“As a result, fewer deals are being agreed and transactions are taking longer to complete, something that is clearly reflected in the drop in activity seen during H2.
WINDOWS OF OPPORTUNITY
He adds: “Renewed uncertainty with respect to the current situation in the Middle East has also added an additional layer of complexity for many international buyers, particularly those impacted by weakening currencies against the pound.
“Of course, such events can also present heightened windows of opportunity and the prime London market remains one of the most desirable global destinations for high-end buyers.
“All things considered, it will be interesting to see how buyer activity levels shift over the first half of 2026.”
