Is now the right time to buy in prime central London?

A sense of stability is returning to prime central London as improving sentiment encourages buyers and sellers back into the market

Ellie Pryor

21 September 2026

3 mins read

Is now the right time to buy in prime central London? — Photography by Juan Trujillo Andrades

As the UK emerges from one of its hottest summers on record, the London property market is showing early indicators for the autumn buying and selling season, with momentum returning and a quiet optimism beginning to blossom. In Prime Central London (PCL), sales in the three months to August were 6% higher than 2025, Knight Frank data shows.

“A sense of stability is returning to the market in PCL, which means both buyers and sellers are starting to make decisions," says Stuart Bailey, Knight Frank's Head of Super Prime Sales in London. "Both domestically and globally there has been a lot of unpredictability in recent years, but people are becoming more accustomed to operating in that environment and are prepared to make decisions knowing change may still come.”

The improving sentiment comes after a prolonged period of price adjustment. Average prices in PCL have fallen 23% since their last peak in mid-2015, creating opportunities for those willing to take a long-term view.

“Many buyers are now focused on owning a home in London because of the lifestyle benefits the capital offers, whether that is connectivity, education or culture,” Bailey says. “At the same time, pricing has become attractive if you're thinking with your head as well as your heart.”

Spotting potential in the market

In today's market, realism remains essential. Many PCL sellers are discretionary and not reliant on mortgage finance, giving them flexibility over when, or whether, they choose to sell. As a result, stock levels remain constrained, while limited supply continues to support the rental market. Average rents in PCL increased by 1.1% in the year to July and are now 37% higher than before the pandemic.

Woman walking along the River Thames, London

Rather than individual neighbourhoods influencing opportunities, Bailey believes mindset is often the defining factor. “It's not necessarily the geography of where is hot or not, but the commonality of mindset that determines where deals are going to be done,” he says.

As the price gap between prime outer London and PCL narrows, some buyers are returning to central locations to take advantage of the capital's lifestyle appeal. At the same time, the habits of ultra-high-net-worth individuals are evolving. Many are increasingly spending fewer than 90 days a year in traditional hubs, prompting a shift in what they expect from a London home.

Rupert des Forges, Knight Frank's Head of Prime Central London Developments, says convenience and quality now often outweigh the desire for vast amounts of space.

“Our clients continue to attach considerable importance to London for their businesses, with the City as the key global hub,” he says. “Meanwhile their social lives revolve around the private clubs of the West End and the endless amenities of the capital, be it the restaurants, the Royal Parks and the connectivity to the Cotswolds and beyond.”

A shrinking pipeline of new developments in PCL is also creating a more polarised market, with exceptional homes increasingly scarce. As a result, there are a growing number of buyers who are prepared to create their ideal property rather than wait for it to come to market.

“There is an increasing appetite for refurbishment projects," Bailey says. "Many buyers at the top end of the market can spend one or two years searching for the right home, so even if it doesn't exist today, the opportunity to create it does.”

Financing a property purchase in prime central London

While interest rates remain high compared with the ultra-low borrowing environment that followed the Global Financial Crisis, lenders continue to have significant liquidity and are eager to deploy capital.

“This means they are looking at other ways to incentivise borrowers outside of offering the cheapest fixed rate on the market," says Josh David, Head of Partnerships at Knight Frank Finance. “We have seen banks offer very attractive tracker rates, especially in the super-prime price bracket, in an effort to deploy large amounts of cash quickly and with lower operational overheads.”

Competition among lenders is also leading to greater flexibility. “Many banks are looking at tweaking their affordability criteria to attract high-net-worth borrowers, and I’ve had some conversations with banks about increasing their loan-to-values for areas like PCL where they see relative value and expect prices to increase over the next few years,” he adds.

While buyers remain selective and sellers continue to price carefully, improved value, more competitive financing and enduring global demand for London property are helping to drive activity, creating opportunities for those taking a long-term view to secure a home in the capital.