This summer, we have tried to bring together the excellent research produced by teams across the industry – Rightmove, Zoopla, LonRes, Savills, Knight Frank and others – and use this data to explain, in our own words, what is actually happening in the market and what the key statistics and data-driven takeaways are.

If there is one word that describes the property market over the last six months, it is uncertainty. Buyers, sellers and investors have spent the last six months trying to navigate a steady flow of economic, political and geopolitical developments, with each new event making it harder to predict where the market is heading next. At the same time, the industry itself is changing rapidly, with AI, new property technology platforms and evolving consumer expectations all raising questions about how people will search for, buy and sell homes in the future. Read the full article for the key numbers, trends and insights.

Prime Central London Isn’t Crashing – But It Is Repricing.

As always, there is London and then there is the rest of the UK. We mainly operate in London and are increasingly active in Prime Central London, dealing with higher-value properties and more central locations. Thankfully, across much of the UK, the property market is looking a little stronger, with Zoopla expecting UK house prices to rise by around 1.5% this year, but in PCL the picture remains more challenging.

Since the start of the year, most major forecasters have revised their expectations for Prime Central London downwards. Savills now expects PCL prices to fall by 3% in 2026, compared with a previous Q1 forecast of -2%. Knight Frank has revised its forecast from flat growth to a 2% decline, while JLL now expects prices to fall by 5% this year. Strutt & Parker, which previously anticipated growth of between 0% and 3%, now forecasts a decline of between 1% and 3%. Importantly, none of these forecasters is predicting a market crash. Most continue to expect a recovery from 2027 onwards, with Savills forecasting cumulative PCL growth of 7.5% by 2030 and Knight Frank expecting growth of 16.8% by the end of the decade.

The overall picture from the data is that supply has increased faster than buyer demand.

Zoopla reports that the number of homes for sale is 13% higher than a year ago, while LonRes recorded an 8.6% increase in available stock across prime London and new instructions running 27.4% above pre-pandemic levels. Buyers have more choice, sellers face more competition, and pricing has become the most important factor in determining whether a property sells.

Over the last two years, buyers and sellers have had to absorb a constant stream of economic, political and geopolitical developments. Inflation has fallen significantly from its peak, but remains 2.8% – well above the Bank of England’s 2% target. At the same time, concerns around economic growth, interest rates, taxation and international conflicts continue to affect confidence.

What a changing political landscape means for property: will it be reformed, restored or finally left alone to recover?

Many had hoped that the General Election would bring a period of stability. Instead, recent local elections brought the opposite, creating a more fragmented political landscape and bringing to power parties outside the traditional Labour-Conservative balance. In Prime Central London areas, however, voters largely moved in the opposite direction with Westminster, Kensington and Chelsea regaining Conservative administrations.

For London property buyers and investors, the main aspect of it is planning and regeneration. Large-scale projects across London depend on long-term policy consistency and planning decisions. While we do not expect major schemes to stop, political changes can influence timelines, density and affordability requirements, and local planning priorities.

The gap between buyer and seller expectations remains.

Yet politics and economics are only part of the story. The bigger issue remains the gap between buyer and seller expectations. Many sellers remain emotionally attached to a price the market simply will not support. Often, that figure reflects what they originally paid – at a higher point in the market – together with the stamp duty, which has been climbing every year over the past 14 years we’ve been in business, and the cost of renovation. For properties bought five to ten years ago, recovering those costs can be difficult in today’s market. Those who purchased 10+ years ago generally have greater flexibility. Those who purchased more 10+ years ago have more flexibility. Buyers, meanwhile, have access to more market data than ever before, are seeing higher levels of available stock and expect substantial discounts. 

The latest Prime London data illustrates this clearly. More than half of all properties sold this year required at least one price reduction before finding a buyer.

The average discount from the original asking price has reached around 10.5% across prime London and more than 14% in Prime Central London. LonRes reports a sharp rise in properties being withdrawn from the market after failing to attract buyers, only to be re-marketed later at a lower price. 54% of properties sold in 2026 have already undergone at least one price reduction before achieving a sale. This figure is the highest on record.

Some of these properties, however, are being rented out, which is also creating opportunities for our rental search clients and bringing a number of interesting high-end properties to the market. We are talking about rents of £500,000 per year for a four-bedroom flat in Holland Park, for example. This supply is being met by strong occupier demand, as those who are not ready to buy because of uncertainty – even very wealthy individuals – are choosing to keep their options open through renting.

Despite all of this, demand has not disappeared. Under-offer activity across prime London was 7.6% higher than a year earlier and 20.8% above the 2017-2019. So the buyers are there and active – when they see value.

Global wealth remains mobile and increasingly prefers flexibility: Goodbye, Dubai?

The situation in the Middle East has also led to speculation that London could benefit from a wave of returning expatriates and international capital. On the ground, we do not see that happening.

Many people who left the UK in recent years left for a reason, and that reason was taxes. The UK’s tax policy has not fundamentally changed, so there is little reason for large numbers to return permanently. Instead, many internationally mobile families now divide their time between London, Europe and the Middle East, carefully counting days to avoid becoming tax resident in any one jurisdiction. 

We are seeing a stronger demand for premium rental properties. Some clients want a London base, but they are not ready to commit to a purchase while economic and geopolitical uncertainty remains high. And this is an area where our team is particularly well-placed to help through our dedicated rental search services.

There were concerns that the Renters’ Rights Act, which came into force on 1 May, would significantly affect the rental market. So far, however, we have seen little impact at the premium end. Many Prime Central London lettings exceed £100,000 per year in rent and therefore fall outside the Housing Act framework, operating under common law tenancy agreements rather than the AST arrangements targeted by the new legislation. High-net-worth tenants continue to prioritise flexibility, quality and location, and demand remains strong.

AI and the future of estate agency.

The property industry itself is changing rapidly. Artificial intelligence is becoming a major talking point, with portals promising a future where buyers simply describe their ideal home and instantly receive perfectly matched results. New platforms and property technology businesses are appearing every month, creating intense competition.

Even the largest players are not immune. Rightmove remains the UK’s dominant property portal and a FTSE 100 company, yet it now faces a £1.5bn class action from agents, and the sector itself is becoming increasingly competitive.

Will AI replace estate agents? Not anytime soon.

Technology can improve marketing and search, but it cannot replace trusted relationships, local knowledge, negotiation expertise or access to off-market opportunities. In Prime Central London, many of the best properties never appear on a portal. Clients still value discretion, personal introductions and expert guidance throughout the transaction process.

AZ Real Estate is firmly positioned within this premium segment. Through our core team and trusted network of specialist partners, we support both high-net-worth clients and, through AZ Alliance, clients across Greater London. Regardless of price point, our focus remains the same: helping clients navigate a complex market and identify opportunities others may miss.

The market is challenging, but far from inactive. Buyers have more negotiating power than they have enjoyed for years, while realistically priced properties continue to sell. The market is rewarding pragmatism, flexibility and good advice.

If you are considering buying, selling, investing or letting in London, we would be delighted to help.