The prime London housing market slowed considerably during the second half of 2025, with average monthly transaction levels falling by 31% compared to the first half of the year, according to Jefferies London.

An average of 1,431 property transactions completed per month during H1 2025 across prime London postcodes, however this fell to an average of just 987 transactions per month in H2, marking a 31% decline in market activity. 

Damien Jefferies, Founder of Jefferies London, said: “Our latest research highlights the extent to which the prime London market declined during the second half of 2025, with transaction volumes falling quite considerably across all but a handful of postcodes. 

“This slowdown reflects wider conditions across the prime central London market, where a combination of tax changes, revisions to non-dom rules and a prolonged period of higher interest rates have all weighed heavily on buyer demand. 

“As a result, fewer deals are being agreed and transactions are taking longer to complete, something that is clearly reflected in the drop in activity seen during H2.”

Just three prime London postcodes saw an uplift in activity during the second half of the year with the W1K postcode (Mayfair & St James’s) recording the strongest increase, with transactions rising by 25%, followed by WC1N (Russell Square), up 11.1%, and WC1H (St Pancras), which saw an increase of 4.2%.

Some of the sharpest declines were seen across core prime central locations with WC2B (Drury Lane, Kingsway & Aldwych), W1D (Marylebone, Fitzrovia & Soho) and W1J (Mayfair & St James’s) all saw transaction levels fall by 60% during the second half of the year.