Prime London estate agents endured an exceptionally quiet August, with sales falling to their lowest level for the month since 2008 and achieved prices down 7% year-on-year.
New figures from LonRes show transactions fell 19% compared with August 2025. They were also 25.6% below the average recorded between 2017 and 2019.
The shortage of activity extended to vendors. New instructions dropped 22.1% year-on-year, taking them to their lowest August level since 2011.
However, properties going under offer fell by a smaller 15.3% annually. They also remained 9.4% above the pre-pandemic August average.
LonRes said this suggests underlying buyer demand has not disappeared. Instead, agreed offers appear to be taking longer to progress into completed transactions.
Half of stock has undergone a price reduction
Prices remained under pressure during the month.
Average achieved values across prime London fell 7% year-on-year. They now sit 6.7% below the 2017-2019 average.
Meanwhile, sellers who secured deals accepted significant discounts. Properties sold during August achieved an average discount of 10.4%.
Half of all available stock had also undergone a price reduction.
Although the number of reductions fell 4.6% compared with last August, it remained 25.5% above the pre-pandemic average.
Available sales stock finished August 1.1% lower than a year earlier. It was also 4.9% below the peak recorded in September 2025.
£5m-plus market also slows
There was little sign of greater urgency at the top end of the market.
Transactions above £5m fell 18.8% year-on-year in August, while new instructions dropped 10.4%.
However, both remained above their respective pre-pandemic August averages. £5m-plus transactions were 39.1% higher, while new instructions were up 43.3%.
Under-offer activity also rebounded after two weak months, rising 37.5% compared with August last year.
Looking across July and August combined, £5m-plus transactions fell 11.8% year-on-year. New instructions dropped 21.3%.
Withdrawals, however, increased 8.3%.
At the end of August, the number of £5m-plus properties available for sale was 6.4% lower than a year earlier. However, stock remained 64.9% above August 2021 levels.
Lettings activity falls but rents keep rising
Prime London letting agents faced a different market.
The number of lets agreed fell 27.5% year-on-year in August, according to LonRes. New rental instructions also decreased by 3.5%.
However, available rental stock increased 6.1% compared with a year earlier.
Despite weaker activity and higher supply, average rents continued to rise. Rental values increased 3.8% year-on-year and now stand 41.4% above their 2017-2019 average.
Since August 2019, rents have risen 37.1% for houses and 36.2% for flats.
The lettings activity figures exclude Prime Fringe postcodes following a change to the way LonRes collects listings for its rental checker.
Nick Gregori, head of research at LonRes, said: “There are quiet Augusts and then there are quiet Augusts. With the market in general lacking momentum so far this year, the low level of activity this summer is no great surprise, but 2026 saw the lowest number of new instructions across prime London in an August since 2011, and the lowest level of transactions since 2008.
“Although this lack of activity extended to price reductions, which saw an annual fall for the first time this year, values remained under pressure.”
Gregori said persistent inflation and the outlook for interest rates were also weighing on the market.
He added: “There was no more urgency at the top end of the market either, with a handful of major deals failing to mask the lack of £5m+ activity.
“Like the wider market, this applies to sellers as much as buyers, with withdrawals the only metric seeing growth over the summer. Combined with a fall in £5m+ instructions, available stock has been declining from its peak last year.”
Gregori said the prolonged “wait-and-see” approach in the sales market was also having an impact on lettings.
“For reluctant buyers, the rental market allows a chance to ‘try before you buy’. For those deciding whether or not to sell, the rental market offers a chance to get some income in while waiting for more favourable sales market conditions.”
