Price growth in PCL, Greater London & England and Wales 

Liam Monaghan, Managing Director of LCP Private Office, comments on Prime Central London

Prime Central London (PCL) values continue to see limited movement, with nominal 0.2% quarterly price growth, compared to 0.6% in Greater London and 1.1% across England & Wales. PCL prices dipped by -0.9% over the 12 months to April 2025, whilst values across Greater London and England & Wales increased by 1% and 2.2% respectively.

Transaction volumes in PCL during the year to January 2025 were significantly more subdued, down by -20.9% on the previous year, averaging just 57 sales per week. According to the latest data, however from industry source LonRes, the number of prime London properties sold in Q1 rose by 12.4% compared to the same period last year, so we anticipate the Land Registry data will similarly reflect a rise in transactions over the first quarter.

Whilst there has been more stock available since the turn of the year, the PCL market remains sluggish and we have not seen the anticipated Springtime bounce. Buyers remain cautious. Demand has predominantly been from needs-driven buyers in the £1-2m bracket, rather than discretionary buyers in higher-value markets, with very little appetite from investors. A trend we have observed, however, is an increased demand from domestic retirees, relocating to London to be based near children and grandchildren.

The recent volatility of global markets does seem to be encouraging international buyers and tenants to look more closely now at PCL as a safe haven choice. Whilst prices have seen limited growth in recent years, long-term forecasts are more positive, with the leading market forecasters predicting between 10 – 20% price growth in PCL over the next 5 years.

The Bank of England’s decision to cut the base rate by a further 0.25% should also have a positive impact on the market as mortgage rates continue to fall. For purchasers conscious of value for money, this change could be the catalyst they have been waiting for to finally enter the market with confidence.

Prime Central London Performance By ‘Village’ and by property type

London’s three most expensive villages, Mayfair, Knightsbridge and Belgravia, saw the most significant annual price growth for flats, increasing by 1.7%, 0.8% and 0.9% respectively, with house prices in Mayfair also seeing growth of 0.2%. Values in these prestigious, highly desirable neighbourhoods remain significantly below their 2015 peak, showing there is still value to be found in Prime Central London, even in the most expensive postcodes.

Other central London villages, including Marylebone and Fitzrovia, saw annual price growth for both flats and houses, with 1.9% and 1.7% combined growth respectively, outperforming most other areas. Both locations are popular with both domestic and international homeowners wanting the central London lifestyle, but seeking better value compared with their higher-value neighbours. As with all central London locations, prices also remain well below the 2015 peak.

Kensington saw the most dramatic annual decline in values across both flats and houses, down -3% and -3.2% respectively. Property prices here are the most significantly below their peak, particularly in the flats market, where values are -16.4% less than they were 10 years ago in 2015.

LCP Private Office is not just a buying agent. We help homeowners and investors acquire, renovate, design, let and manage their property in Prime Central London. Whether you’re a first-time buyer or a seasoned investor, our experienced team are here to help.

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Disclaimer: This report is published for general information and should not be relied upon in any way. No responsibility can be accepted by London Central Portfolio Limited for any loss or damage resulting from any use of the contents of this report. Any forward-looking statement involves known and unknown risks, which could differ materially from those expressed or implied.