- Central London property prices 10.3% below their 2014 peak
- 10.3% average discount negotiated for London prime property
- 43.5% of listings required a published price cut
16th February 2026 – Coutts has published its latest London Prime Property Index, revealing prices in many Central London hotspots are now back to 2013 levels, providing rare buying opportunities for those who have potentially been lying in wait. Following a prolonged period of ‘wait and see’ behaviour through much of 2025, the market is now increasingly poised for renewed momentum in 2026.
Value in the Heart of London
Prime London prices were effectively flat in Q4 2025, rising a mere 0.1%. The market continues to show long term value, with current prices still 10.3% below their 2014 peak. For buyers, this presents rare opportunities in some of the capital’s most prestigious postcodes. Outer prime neighbourhoods remained resilient throughout the year, supported by strong demand from domestic buyers. King’s Cross & Islington for example delivered positive annual price growth. Meanwhile, prime central London locations offered some of the most compelling long-term value in the market. Knightsbridge & Belgravia prices sit 29.5% below peak values, and Chelsea remains 20.5% below peak. This gives buyers access to pricing levels rarely seen in one of London’s most desirable districts.
Healthy Negotiation Conditions
Buyer negotiating power was a defining theme for late 2025, with average discounts reaching their highest level in more than five years. In Q4, buyers secured an average 10.3% reduction from the asking price, while 45.3% of listings required a published price cut and 82% of homes sold below asking price. Central London experienced the sharpest shift, particularly in Mayfair & St James’s and Knightsbridge & Belgravia, creating opportunities for value-led purchasers. By contrast, outer prime districts with stronger demand such as King’s Cross & Islington and Battersea, Clapham & Wandsworth saw more modest reductions on asking price, highlighting their continued competitiveness.
Katherine O’Shea, Coutts Real Estate Director, commented: “We continue to see value across some of the capital’s most sought after postcodes, with prices effectively back at 2013 levels just as demand begins to build.
“We expect 2026 to bring a more active market as confidence steadily returns among both domestic and international buyers, now is a window worth paying attention to.”
Tightening Supply
A notable change towards the end of 2025 was a sharp reduction in supply, which reshaped conditions across the London market. New listings fell by 35% quarter-on-quarter and were 18% below the ten-year average. Available stock on the open market declined by 15% . This tightening supply is expected to play a role in early 2026. If stock remains constrained, sellers could regain pricing power earlier than anticipated, which could potentially pave the way for firmer values as the year progresses.
With greater fiscal clarity following the Autumn Budget and improving market sentiment, Coutts expects a return of pent-up demand in 2026, particularly from international buyers. When combined with already constrained stock levels, this could set the stage for a more active and increasingly competitive market over the year ahead. For buyers seeking to secure prime or off market opportunities, the Coutts Property Finder Service* offers specialist access through a trusted network of leading buying agents.
The real estate team and bespoke mortgage service could help you find and buy your perfect property – even before it’s on the market. Coutts service can support you at all stages of the process
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Notes to Editors
*Over-18s only. Terms and conditions apply. You may not be eligible for all Coutts mortgage solutions. Security may be required. Product fees may apply.
See here to see how Coutts’ Property Finders Service can help: https://www.coutts.com/private-banking/lending/mortgages/property-finder-service.html
About Coutts
Coutts is a wealth manager and private bank with three centuries of experience, providing customised solutions for its clients. These include discretionary and advisory investment management services as well as advice on philanthropy, family businesses, succession planning and commercial banking services to corporate clients. Headquartered in London, Coutts is part of NatWest’s wealth businesses. For further information please visit www.Coutts.com
Data provided by LonRes for the Coutts London Prime Property Index (CLPPI) – which reveals overall trends and what’s happening area-by-area across the capital.
