Buyer demand weakened across prime central London during the second quarter of 2026, but committed buyers continued to transact where homes were priced realistically, according to Winkworth’s latest market report.
The estate agency said tenant registrations increased by 25% year-on-year during the quarter, while sales enquiries fell by more than 10%, reflecting a slower sales market alongside continued strength in lettings.
Winkworth’s analysis of sales over the past two years found that vendors who reduced asking prices early to reflect market conditions sold their homes more quickly without accepting significantly larger discounts. Properties that were repriced promptly achieved, on average, more than 98% of their final asking price, while homes that remained overpriced often stayed on the market for a year or more before larger reductions were agreed.
The report also examined the impact of collapsed sales. According to Winkworth, failed transactions now tend to occur later in the conveyancing process and typically add around four months to the selling process while reducing the eventual sale price by about 3%.
The report highlights changing buyer demographics across prime central London. Gulf and European buyers remain active in Knightsbridge, American purchasers continue to target family homes in Notting Hill, while UK-based parents are increasingly buying in Pimlico, attracted by comparatively lower prices. Across much of Winkworth’s network, around seven in 10 buyers are now UK-based, with property chains becoming more common in a market traditionally dominated by cash purchasers.
In the lettings market, the agency said the Renters’ Rights Act is beginning to influence tenant behaviour, particularly around the £100,000 annual rent threshold, where different tenancy rules apply.
Looking ahead, Winkworth said political and fiscal uncertainty continues to weigh on sentiment ahead of the Autumn Budget. However, with interest rates remaining on hold and needs-driven domestic buyers continuing to transact, it expects realistically priced homes to continue attracting demand.
Dominic Agace, CEO of Winkworth, said: “What we’re seeing is a new shape to demand in prime central London before a more consistent increase; real variation from one area to the next, but a rising level of commitment from the buyers who are there. After the price reductions of the past decade, and particularly the last 24 months, the value is becoming unarguable.
“The challenge is whether the lessons of last year are learnt and the economic kite-flying avoided. With a fresh approach in Whitehall and a chancellor with deep Treasury experience, there is reason to hope the same pitfalls will be sidestepped. If they get it right, we could see steady improvement in prime central London – with prime fringe buyers moving inwards to realise the value opportunity, and London’s international appeal enduring the mistakes of the past.”
