Sales activity across prime London has picked up this year, with buyers increasingly choosing to negotiate on price rather than abandon deals, according to data from Knight Frank.

The number of transactions across prime central London (PCL) and prime outer London (POL) in the three months to August was 2% above the five-year average, the property consultancy said.

PCL has seen a particularly notable improvement, with sales in the three months to August 6% higher than during the same period in 2025.

Stuart Bailey, head of prime central London sales at Knight Frank, said buyers were responding differently to market uncertainty this year.

“The key difference this year is that buyers are using pre-Budget speculation and bond market jitters to negotiate the price down rather than walk away from the deal completely,” he said. “The underlying confidence among buyers is there and parts of PCL are extremely good value.”

Despite the increase in transaction levels, prices remain under pressure. Average PCL prices fell 3.3% in the year to August and are now 23% lower than they were 11 years ago.

In POL, prices declined by 0.4% over the year to August and are down 7% over the past decade.

London’s lettings market has also faced a reduction in activity, although this has been broadly matched by a fall in available supply.

The number of tenancies agreed across London in the three months to August was 8% lower than a year earlier, exactly matching the 8% decline in new listings over the same period.

Last week Rightmove analysis found that average asking prices have fallen across 11 of London’s popular commuter belt towns, while prices have risen in hotspots near Glasgow and Manchester.