The business’ analysis shows that sellers returning to the market led to greater choice for buyers, with the number of homes listed for sale in early April 9.7% higher than the same point last year. However, prospective buyers remain price sensitive. Average prices across PCL fell 0.6% over the quarter and 3.3% annually, as buyers felt emboldened to negotiate amid ongoing economic uncertainty.
Despite broader price pressures, the top end of the market remained resilient. Prices for homes in the £10 million+ bracket increased by 1.1% year-on-year in Q1 – the only price tier to record annual growth. Conversely, growth at the lower end was supported by improving buyer sentiment, with homes priced under £2 million seeing transaction volumes rise by more than 20% annually, outperforming the five-year Q1 average by 11%.
Uncertainty around the impact of tariffs has weakened US$ Sterling exchange rates, but even considering recent changes buyers using dollar or dollar pegged currency still benefit from substantial discounts on London property.
The lettings market showed a similar trend, with activity strongest at both the lower and upper ends of the pricing spectrum. Annual rents for one-bedroom flats rose by 3.1%, while the number of homes let for more than £3,000 per week increased by 7.1% compared with Q1 2024. Overall, average rents rose 0.1% over the quarter and 2% annually, supported by low levels of available stock. Rental listings remain well below historical averages, down 13.1% annually and 34% compared to five years ago.
Marcus Dixon, director of UK residential research at JLL, said: “There are clear signs of renewed confidence across PCL, with strong sales activity and a notable increase in new listings helping drive momentum. Sellers are returning to the market, with both domestic and international buyers seeking out opportunities. But those looking to sell need to ensure they are priced competitively, with buyers still cautious.
“An uncertain outlook for the global economy is holding some prospective buyers back, many of whom are renting instead, but for others interest in tangible safe-haven assets has increased in 2025, leaving London well placed to benefit from an increase in overseas capital as we move through the year.”
