In Prime Central London, prices dropped -3.7% year-on-year and -1.5% in Q2 2025, now sitting 22.4% below their 2014 peak. Tax changes have shifted buyer profiles, with domestic purchasers now making up a larger share.
Outer Prime London held up better, with prices flat over the past year - and South West London areas like Clapham, Putney, and Wimbledon are outperforming, which Savills say is due to more stability in the mortgage markets and increasing staying power due to the 'return to office' trend.
Prime regional markets fell -2.7% year-on-year, with the sharpest drops in coastal areas (-6.7%) and the traditional country house market (-6.2%), which had surged during the pandemic. Scotland and the North of England bucked the trend, showing slight annual growth of 0.1% and 0.7% respectively.
Lucian Cook, head of residential research at Savills, said:
“On the ground, we have seen the number of movers from London slip back as the commuter belt contracts and demand is more focussed on London’s suburban markets. This combined with greater economic uncertainty and concern over tax among discretionary buyers has created a classic buyers’ market, with more stock available to choose from and less competition."
"That being said, the number of properties going under offer across the board remains higher than last year, as needs-based buyers continue to drive momentum.”
Alex Christian, director at Savills Private Office, added:
“Following tax changes introduced at the last budget, there has been a smaller pool of increasingly price-sensitive buyers. Importantly, we haven’t seen a flood of new stock, but properties are typically remaining on the market for longer as buyers bide their time, with some weighing up options amidst early speculation around changes to some elements of non-dom policy."
“Increasingly we are seeing buyers recognise the historic value on offer. In particular, domestic buyers purchasing a main residence make up a larger proportion of our buyers.”
