High-end neighbourhoods see prices fall by up to 60%
Property prices in some of London’s most prestigious postcodes have fallen by up to 60% in early 2025 compared to the same period last year, according to new research from brokerage Jefferies London.
The firm analysed Land Registry data for six high-end neighbourhoods and found widespread declines in average sold prices. Mayfair recorded the steepest drop, with homes selling for an average of £1.5 million — a 60% fall from 2024 levels.
Chelsea followed with a 47% year-on-year decrease. Belgravia and Westminster saw average prices fall by 44% and 28%, respectively. Meanwhile, Kensington and Hampstead were less affected, each registering declines of just over 20%.
Only two of the six areas maintained an average sale price above £1 million, highlighting the shift towards lower-value transactions in traditionally expensive markets.
Separate data from property analytics firm LonRes supports the trend. Sales volumes across prime London dipped 26.2% in April compared to the same month last year and were nearly 23% below the 2017–2019 April average. Prices also fell 2.9% year on year and remain 1.3% below pre-pandemic levels.
Damien Jefferies (pictured right), founder of Jefferies London, said the price drops reflect a slowdown in high-end transactions, not a devaluation of the prime market itself. “The prime London market is world renowned and so the current slide in sold prices is very much a transactional issue and certainly not one that reflects an actual drop in values,” he said.
“As it stands, we’re simply not seeing these big ticket purchases in the current market and, while properties are transacting, they are doing so at the lower tiers of the market.”
Jefferies added that interest from buyers remains strong and expects price growth to resume as the market stabilises through the remainder of 2025..
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
