Prime London Property Records First Quarterly Price Rise in Four Years
Prices in prime central London rose by 0.3% in the three months to September 2026, the first quarterly increase in four years, according to Knight Frank’s latest index published on 2 October. Over twelve months prices were still down 2%, but that was the smallest annual fall in 18 months.
The figures suggest London’s top-end market has found a floor after a long correction. Average prices in prime central London remain 22% below their last peak in August 2015.
What the data shows
- Prime central London: +0.3% over the quarter to September; −2% over the year.
- Prime outer London: −0.6% over the year. Values there have not moved by more than 1% in either direction since May 2025.
- Transactions: exchanges across prime central and outer London were 2.5% lower than the previous twelve months, compared with a 14% annual drop recorded in March.
- Super-prime (£10m+): 121 sales in the year to September, level with the previous year, with total spend up 14% to £2.4 billion.
Why demand has returned
Knight Frank’s head of research, Tom Bill, argues that the absence of bad news has been enough to release pent-up demand. Mortgage rates fell towards 3.5% early in the year before the outbreak of conflict in the Middle East in March pushed them closer to 4.5%. As the conflict faded from the headlines, buyers with existing mortgage offers moved to complete before those offers expired.
The super-prime segment came under particular pressure after the abolition of non-dom status in April 2025. Its stabilisation this year reflects sellers becoming more realistic on price and buyers sensing value after a decade of falls, according to Knight Frank’s London sales team.
What to watch next
Two dates will shape the final quarter: the Autumn Budget on 28 October, which will give clarity on property taxation, and the US mid-term elections on 3 November. Renewed Middle East tensions pushed mortgage costs up again in mid-September, so the recovery remains fragile. See our guide to what the Autumn Budget means for London property owners and our analysis of the Bank of England’s latest rate decision.
Frequently asked questions
Are prime London property prices rising?
Knight Frank recorded a 0.3% rise in prime central London prices in the three months to September 2026, the first quarterly increase in four years. Prices were still 2% lower than a year earlier.
How far are prime central London prices below their peak?
Average prime central London prices are 22% below their last peak in August 2015, according to Knight Frank.
How many £10m+ homes sold in London in the last year?
There were 121 sales above £10 million in the year to September 2026, the same number as the previous year.
Sources
This article is general information, not financial, tax or investment advice. Figures are taken from the sources listed and were correct at the time of publication.
