The prime London residential market in 2025 is showing a clear shift: while the very core – Mayfair, Knightsbridge & Belgravia – remains under pressure, many outer-prime areas of London are beginning to lead the performance curve.
According to the Coutts London Prime Property Index, average prime London property prices rose by 7.4% in Q2 2025, bringing the average price to 2.3% above the same period last year. coutts.com Much of this growth was driven by outer-prime localities such as Hammersmith & Chiswick and Wimbledon / Richmond / Putney & Barnes. coutts.com
Why is this happening? Several factors are at play:
Buyers are seeking more space and greener surroundings, especially post-pandemic.
Outer prime locations often offer comparatively better value versus ultra-central London.
With interest‐rates expected to ease, affordability begins to improve for high-net-worth buyers.
Meanwhile, central prime London remains more challenged. For instance, average discounts negotiated by buyers remain high – 8.7% for the prime market overall and significantly higher in some central postcodes. coutts.com
Implications for Investors / Buyers
If you are looking into prime London property investments, this means:
Consider exploring outer prime districts where momentum is stronger.
In central London, the pricing gap may give buying opportunities, but future growth may be more muted.
Check discount levels closely: high negotiated discounts may indicate buyer leverage in certain segments.
Keep an eye on macro factors (interest rates, tax changes, international buyer flows) which continue to influence performance.
Conclusion
The prime London market is not monolithic. While headline numbers look positive, the real story lies in sub-market divergence. Buyers and investors who understand where growth is happening (and why) will be better positioned.