2026 | It is easy to say London ….

Market Updates

London is like that –  a city that captures you without asking permission. Iconic neighborhoods, international schools, postcard-perfect parks, airports that take you anywhere and yes, sometimes it makes you feel like you’re in a movie. And maybe you even run into an actor.

I had imagined it as the ideal city for my children, a place where they could receive an international education and build solid careers. And that’s exactly what happened. Of course, I never thought I would be here today, writing about this place in the way only someone who lives here can.

If you, like me, discovered and chose it in the 1990s, you know what I mean: opportunities everywhere, electric energy in the air, and the feeling that every corner could change your life.

But is it still like that?

The answer is surprisingly yes. London retains that energy, that sense of possibility, even if today it manifests differently, partly due to international and local challenges, which, let’s admit it, are still present. One thing is certain – it’s hard to find a place that, to survive, constantly pushes you to improve. Let’s be honest… you’re never enough, and everywhere you turn, you’ll find someone who is ridiculously better than you, and maybe they’ll even tell you, having come from far away to reach that London that has always welcomed the world.

The Asset Class of my heart

Central neighborhoods have always attracted international investors, even if many are still waiting for the perfect moment to make a move. The question is: is there really a better, more advantageous time than now? London moves fast; sometimes, it just takes a signal, like a new opening toward Europe.. The fact is, today buying in Prime Central London now means being able to approach asking prices significantly lower than usual, up to 24.5 percent below the 2014 peak.

By contrast, the prime outskirts offer stability, consistent local demand, especially for those who look beyond the most prestigious areas. London has extraordinary connectivity, making it an accessible and enjoyable city for many.

A few numbers

According to Lonres data, in the early months of 2026, the property market showed signs of cooling. About 45.3 percent of properties for sale had price reductions, and 82 percent of transactions were completed below the asking price. January recorded 30.2 percent fewer sales than the previous year and 20.2 percent fewer than the 2017–2019 average, while property availability increased by 8.3 percent compared with January 2025.

In the high-end segment, with properties over five million pounds, transactions fell by 7.1 percent, even as new listings rose 12.5 percent, indicating greater choice for buyers. Although some forecasts suggest a further 2 percent decline in prices over 2026, the high availability of properties and price reductions offer interesting opportunities for long-term buyers.

Buyer interest is mainly focusing on well-priced properties with clear appreciation potential. In other words, careful analysis of local data makes the difference between a smart investment and a missed opportunity.

Observing closely

Recently, I considered a couple of opportunities in Kensington and Chelsea, available in prior-auction. One, a two-bedroom property with a hypothetical closing around 840 pounds per square foot, required no renovations. Another very attractive one was in Mayfair, for sale at 750 pounds per square foot, plus costs to extend the lease, bringing the cost per square foot to about 1,178 pounds, plus legal fees for the extension. Still a bit high if you consider renovating to achieve two bedrooms, but objectively, these are opportunities worth working on.

Overall, the stock of properties for sale remains high. As of September 2025, available prime-market properties were almost 19 percent higher than the previous year, offering more choice and greater negotiation margin. New listings show dynamism. In early 2025, new listings rose 20 percent, while first-quarter sales grew 12 percent, confirming that the market is alive and that real opportunities exist, especially for those who observe carefully.

London is not just one neighborhood

The London property market is vast, with a series of micro-markets, each with its own dynamics.

City center, zones 1 and 2, neighborhoods like Mayfair, St James’s, and Knightsbridge remain the heart of the global market. Here, average discounts of 10 to 15 percent are not rare, but be prepared to negotiate calmly and elegantly. The unwritten rule says that whoever shouts first loses.

Prime outskirts, zones 3 to 6, areas like Richmond, Wimbledon, Hammersmith, Putney, and Barnes are more domestic. Families, professionals, gardens, and quality schools keep demand consistent. Here, the market is less volatile, more predictable, and investment opportunities are more solid. It’s worth noting that in some areas within these districts, properties don’t even reach the market before going under offer. Often, units priced under a million pounds with tangible attractive features, such as a garden or independent entrance, are snapped up quickly.

So even if the city center seems static, the outskirts offer a constant flow of real demand, ideal for medium- to long-term investment strategies.

The prime rental market remains robust and will continue to be so. Rents are about 36 percent above pre-pandemic levels, and the Rental Reform Act 2026 reshapes the market. Slower growth indicates stabilisation, offering more predictable returns for rental investors. The point is, however, that there aren’t enough properties, as many small buy-to-let investors are exiting the market.

Back to basics

Understanding the differences between center and outskirts, between global and local markets, will save you from unpleasant surprises.

Breathtaking views and iconic parks are romantic, but first look at prices, stock, and supply and demand dynamics. Only then can you tell if the property is a sailboat ready to navigate various seas, and not just a picture you fell in love with.

Be curious and observant. Walk the neighborhoods, notice the details, and talk to people who work in the market daily, moving from area to area, so you’re prepared when they advise you. Sometimes a small flat with huge light and space for a second bedroom can become a hidden gem.