There are some positive signs in London’s main sales market in March after a slow start in 2025. Activity and long-term averages throughout the year were rising in March last year.
This is based on data from real estate analyst Lonres, which also shows that new sales indicators in March were 14.6% higher than last year and 29.8% higher than the average in March 2017-2019.
Trading in March was 29.9% higher than the same period last year and 32.4% higher than the 2017-2019 (pre-box office) average.
Inventory of available houses is also continuing to increase. At the end of March, stock levels rose 9.1% from the same period last year, up 36.0% in March 2020.
However, the average sold price fell 2.7% per year in March, a 3.6% reduction in value compared to the 2017-2019 (pre-pandemic) level.
The average price decline reached is reflected in lowering price levels. In March, the average discount for major London asking prices was 8.2%.
Transactions in the £5 million market fell in March, with sales down 17.1% from 2024. During the same period, new indicators for the market grew by 61.8%, and stocks in the market continued to rise.
The number of homes in London’s prime minister’s £5 million increased by 22.2% as of the end of March.
In the rental market, activity in March remains low and rent growth has stabilized after the recent increase. Major rents in London rose 4.9% in March (down from 6.2% in February), with average rents 33.3% higher than their 2017-2019 average.
March Lonres data showed that Lets’ consent fell 34.2%, while new indicators fell 23.5%. It is worth noting that stocks in available rental properties fell yearly, with homes in total London markets down 16% at the end of this month compared to the same period last year.
Nick Gregori commented on the latest data:
“Major sales activity across London looked more positive in March, with strong growth in transactions compared to the same month last year. The average realized value fell again every year after the unexpected rise in house prices in February, suggesting that perhaps increasingly realistic pricing could be key to unlocking more demand.”
He pointed out that after several months of communication, one of the transactions was a welcome result for buyers, sellers and agents.
On the rental market Gregori said: “Unlike the volatile seen in the sales market, prime London letters has been consistent so far in 2025. Low levels of new instructions are limiting activity, with the usual caveat that many deals are taking place without the properties being marketed. Annual rental growth was 4.9% in March, with our inner prime catchment recording the largest rise this year.”
