London Property Market

Resilience and evolution in a global city

The London property market has demonstrated remarkable adaptability in recent years, despite economic headwinds, inflationary pressures and interest rate fluctuations. The capital’s enduring appeal as a global financial hub, cultural epicentre and educational powerhouse continues to fuel demand across the market.

Educational excellence is a major attraction for domestic and international families alike, with many choosing to base themselves here for the duration of their childrens’ school careers. The pandemicinduced ‘race for space’ has reshaped other priorities, with increased emphasis on homes that can accommodate remote work, provide access to green spaces and offer a higher quality of life. This trend has particularly benefited outer London boroughs and the commuter belt, where buyers can find more spacious properties without completely disconnecting from the city’s amenities. Areas such as Richmond, Wimbledon and Wandsworth in particular have seen surging interest from families. The excellent schools, abundant green spaces and strong community feel in these neighbourhoods have driven some migration from more central locations.

Despite this movement, the appeal of being in the heart of the city, combined with the return to offices sustains the popularity of Prime Central London, especially Chelsea, Notting Hill, Knightsbridge and Kensington, with each offering their own distinct ‘village’ atmosphere. With these areas having some of the best independent schools in the country, homes within close proximity get snapped up incredibly quickly - especially wider family homes with gardens. We’ve seen two recent examples of this with houses near Cameron Vale School in Chelsea and The Knightsbridge School, which both sold within just three weeks of hitting the market, to families who had children enrolled in local schools. Another very popular school is the American School in St John’s Wood, and we have recently had clients who chose to base themselves in Chelsea and travel up for schooling.

Looking at the latest data, with average prices down by 18% in Prime Central London (PCL) since the last peak in mid-2015, a period of price growth is overdue. Knight Frank’s data shows that prices declined by 2.1% in the year to September, which was the 17th month in a row that they have fallen on an annual basis. The performance has been better in Prime Outer London (POL), which is driven by domestic and needs-based buyers to a greater degree. Prices are 7.3% below their mid-2016 peak, having grown by 0.5% in the 12 months to September. It was the highest rate of growth in Prime Outer London since May 2023 and was the result of falling borrowing costs over the summer months.

As London continues to evolve, one thing remains constant: the enduring appeal of this global city as a place to live, work and raise a family.

Some examples of properties currently for sale through Knight Frank include:

Chelsea - 5 bedroom house for sale in Chelsea Park Gardens, Chelsea, SW3 - £11,995,000

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A beautiful five-bedroom family home situated in one of Chelsea’s most coveted addresses. This immaculately presented, low, wide house spans approximately 4,350 sq ft across four floors, offering a luxurious and spacious living environment in the heart of Chelsea, with a wonderful southfacing garden.

Kensington - House for sale in Hyde Park Gate, Kensington, London, SW7 - £19,500,000

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This wonderful property in Kensington was formerly home to Sir Winston Churchill. According to English Heritage, after losing the general election of 1945, Churchill bought 28 Hyde Park Gate as a London base. He bought number 27 (the property we are marketing) next door, for £7,000 in 1946, originally for use as office accommodation. He later had the two houses combined; they were his longest-standing London residence.

Wandsworth – 3 bedroom house for sale in Orbel Street, London, SW11 - £1,550,000

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This delightful three-bedroom, two-bathroom semi-detached house is situated on Orbel Street in Battersea, in the heart of the ever-popular and highly sought after “Sisters” neighbourhood. The house benefits from its peaceful location on a tree-lined street, while still being close to the vibrant amenities of King’s Road and the Battersea Power Station development.

Wimbledon – 6 bedroom house for sale in Bernard Gardens, Wimbledon, London, SW19£3,000,000

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This wonderful south-facing, sixbedroom, semi-detached, doublefronted early Edwardian family home retains many charming period features and also benefits from a detached double garage, something very rare for properties of this era.

Richmond - 3 bedroom house for sale in Richmond Park, TW10£5,000,000

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A once-in-a-lifetime opportunity to acquire this delightful property situated within the Royal Park of Richmond and its 2,500 acres of ancient trees and wildlife. The original house was built in the late 1800s and served as the gate lodge to Pembroke Lodge which was built circa 1754. In 2003, the original house underwent a substantial redevelopment and extension whilst being sympathetic to the original property.

CHARLES OLVER Head of Prime London Sales at Knight Frank www.knightfrank.com