Central London house sales reach highest point in a decade

Sales of Prime Central London (PCL) homes reached their highest for a fourth quarter in over a decade last year despite a backdrop of uncertainty, according to research from global property advisor JLL.

The business’ analysis shows there were 23% more PCL sales year-on-year in Q4 2024, reaching its highest point since 2013.

JLL noted there were almost 2,000 sales recorded across the full year – 6.5% more than in 2023.

Prices at the top end of the market remained robust. The average price of homes in the £10m+ category rose 1% year-on-year in Q4, while the lower end of the market benefitted from more competitive interest rates, resulting in the release of pent-up demand from home movers.

This increased activity was demonstrated by a rise in transactions in the sub £2million market, up 9.4% in 2024 compared with 2023.

Price pressures remained, however, with prices for homes below £10m ending the year down on Q4 2023.

PCL rental prices were more subdued in Q4, following a similar trend seen in new lets London-wide, with rents flatlining at 0.4% growth year-on-year in Q4.

JLL’s PCL Rental Index shows average annual rental growth cooling over the past two years from the high point of 15% in Q1 2022.

Marcus Dixon, director of UK residential research at JLL, said: “The pendulum has swung from trepidation to momentum for London’s residential sales market.

“The hope now is that this continues as the political and economic landscapes become more settled in 2025 and beyond.

“Increased confidence and certainty among businesses and investors, which we hope will emerge as we get more clarity on the UK economy and taxation in 2025, is forecast to support growth activity and rents across the PCL rental market in 2025.”