Buyers take advantage of lower values across prime housing markets

Meanwhile, prices in the prime markets of central London are now -22.4% below their 2014 peak in a market where tax changes have changed the profile of demand.

Source: Savills prime index, Q2 2025

Prime regional and country house markets

Values of prime properties outside of the capital, which rose dramatically in the wake of lockdown and then fell as interest rates rose, fell a further 1.9% in Q2 2025, as the race for space continued to unwind.

“On the ground, we have seen the number of movers from London slip back as the commuter belt contracts and demand is more focussed on London’s suburban markets. This combined with greater economic uncertainty and concern over tax among discretionary buyers has created a classic buyers’ market, with more stock available to choose from and less competition,” says Lucian Cook, head of residential research at Savills.

“That being said, the number of properties going under offer across the board remains higher than last year, as needs-based buyers continue to drive momentum.”

A shift in market sentiment has been most evident in the traditional County House market (typically above £3m), which was one of the strongest performers during the pandemic. Here average values were down by -6.2% on the year. With annual price growth of prime homes confined to the markets of Scotland and the north of England (0.1% and 0.7% respectively).

Meanwhile in prime coastal markets, increases in council tax and higher stamp duty surcharges,  average values are down by -6.7% in the past year and -15.7% since their peak of almost three years ago.

“Discounts in London have been widely reported, but less has been said about the opportunity for buyers in traditional country and coastal honeypot markets. Recent buyers have been able to secure a prime family house in the South of England with up to six bedrooms for an average of £2.4m. That is on average £280,000 less than they could at the market peak in September 2022,” continues Lucian Cook.

Domestic buyers seize opportunity in Central London

Across the markets of prime central London, prices which were already 21% below their 2014 peak fell by a further -1.5% in the second quarter of the year.

“Following tax changes introduced at the last budget, there has been a smaller pool of increasingly price-sensitive buyers,” says Alex Christian, director co-head of Savills Private Office. “Importantly, we haven’t seen a flood of new stock, but properties are typically remaining on the market for longer as buyers bide their time, with some weighing up options amidst early speculation around changes to some elements of non-dom policy.”

“Increasingly we are seeing buyers recognise the historic value on offer. In particular, domestic buyers purchasing a main residence make up a larger proportion of our buyers.”

Elsewhere neighbourhoods in the South West London wealth corridor, including Clapham, Putney and Wimbledon are bucking the wider market with prices holding firm thanks to more stability in the mortgage markets and increasing staying power due to return to the office mandates.