Prices of million-pound-plus homes in London rose 7.4% in the last quarter, leaving values 2.3% higher than this time last year, Coutts Real Estate has found.
This leaves these prices just 4.1% below their market peak, according to the latest data on London’s prime residential market.
The uplift was largely driven by outer prime areas such as Hammersmith & Chiswick, Wimbledon, Richmond and Putney & Barnes.
Growth in these zones has been supported by stable employment, rising wages, and increasing confidence that interest rates will fall in the coming months. Inner prime locations such as Kensington, Notting Hill, and St John’s Wood also saw price growth.
However, high-end property prices in central London postcodes continue to lag. Prices in Knightsbridge & Belgravia remain 20% below peak, while Chelsea is down 17.2%. Despite rising house values many buyers are still negotiating steep discounts.
Over a third (38.3%) of homes in the million-pound-plus bracket had asking price reductions, and 77% of properties sold for less than sellers initially wanted. Average discounts now stand at 8.7% across prime properties, rising to 19.5% in the super prime bracket (£10 million+).
Central areas saw the deepest cuts, with discounts averaging 17.7% in Mayfair & St James’s and 12.5% in Knightsbridge & Belgravia. In contrast, outer prime markets saw far smaller reductions — just 2.1% in Battersea, Clapham and Wandsworth, and 4.5% in Wimbledon and its surrounding areas.
Coutts Real Estate director Katherine O’Shea said: “The market this quarter has once again been a mixed picture. Prices are high and discounts low in outer prime markets, while central areas still offer value opportunities.”
However, sales activity remained subdued. Transactions fell 15.5% year-on-year, with Q2 recording the lowest number of under-offer properties since 2021. Meanwhile, supply is growing, as new listings rose 40% above the 10-year average. Super prime sales bucked the trend, remaining 10% above average, led by Knightsbridge, Belgravia, and Mayfair.
