Sales activity across prime London remained subdued in March, with transactions down on the previous year despite an increase in new listings, according to analysis by LonRes.
There were 41% fewer sales in March compared with the same month in 2025, and transactions were also 13.3% below the pre-pandemic average for the time of year. While last year’s figures were boosted by the stamp duty deadline, activity in 2026 remains weak by longer-term standards.
New instructions rose by 8.8% year-on-year and were significantly higher than pre-pandemic levels, contributing to a 13.8% annual increase in available stock. However, the rise in supply has not translated into completed sales, with agreed deals taking longer to progress through to exchange.
The number of properties going under offer increased by more than 21% compared with a year earlier, suggesting buyer interest remains, but transaction volumes have yet to recover.
Pricing also remained under pressure. Average achieved sale prices fell by 5.5% year-on-year in March and were 7.5% below pre-pandemic levels. Discounting has become more pronounced, with the average sale agreed at 10.5% below the initial asking price.
Activity in the super-prime market followed a similar pattern. Transactions for homes priced above £5m were 3% lower than a year earlier, while the number of such properties available for sale rose by 7.2%.
Across the first quarter as a whole, sales volumes were down by around a third compared with 2025 and roughly a quarter below the long-term average.
In contrast, the prime lettings sector showed signs of recovery. Average rents increased by 0.3% year-on-year in March, marking a return to growth after three consecutive monthly declines.
Lettings activity rose sharply, with the number of agreed lets up 36.3% and new rental instructions increasing by 61.7% compared with a year earlier. The supply of rental properties also expanded, with stock levels up 48.4% annually.
Nick Gregori, head of research at LonRes, said: “March is typically a busy time for the market, and feedback from agents confirms that buyers are starting their searches and getting out on viewings.
“Our latest data shows that this is starting to translate into more agreed offers – the year-to-date figure is up by 7.6% compared to 2025 – but sales volumes remain stubbornly low, with various issues combining to limit the flow of deals through the full transaction process.”
Gregori added: “Looking ahead, global uncertainty and a weak domestic economy mean confidence in general is low. This limits activity from anyone who doesn’t ‘need’ to move and limits what those still in the market are willing to pay.
“Buying power has been further eroded by mortgage rates increasing and deals being pulled in response to inflation fears driven by the conflict in Iran. At the time of writing, the situation there is appearing to de-escalate, but this could rapidly change again.”
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