Analysis of the prime London property market as of February 2025. Key insights include:
- Sales Market: Average house prices in prime London experienced an annual increase of 0.6% in February, marking the first rise since June 2023. Sales activity was slightly below the same month last year but remained above the longer-term average. Notably, the £5 million-plus market rebounded with a 138% increase in transactions compared to the previous year.
- New Instructions and Stock Levels: There was a significant surge in new sales instructions, 240% higher than the previous year and 475% above the pre-pandemic February average. Consequently, the stock of available homes for sale grew by 11.6% year-on-year and was 37.5% higher than in February 2020. 
- Lettings Market: Annual rental growth across prime London rose to 6.0% in February, the highest since November 2023, with average rents 33.3% above their pre-pandemic average. However, the lettings market saw subdued activity, with a 42.1% annual decrease in lets agreed and a 29.4% decline in new instructions. The stock of available rental properties also decreased by 19.9% year-on-year.
These figures indicate a recovering sales market, particularly in the high-end segment, alongside a tightening lettings market characterised by rising rents and decreasing stock.
