By Fatma Younis
Eight out of 10 properties in London's most exclusive neighbourhoods – including Mayfair, Belgravia and Knightsbridge – are now selling below their asking price, according to research by private bank Coutts. Property prices in prime central London fell 5% in the third quarter of 2026, pushing values 14% below their 2014 peak.
Price Declines in Prime Areas
The steepest drops have hit Belgravia, where prices are 30.8% below their peak, and South Kensington, down 26.9%. Across the prime market, homes are selling at an average 10% discount to asking price, leaving some affluent sellers facing losses of hundreds of thousands or even millions of pounds.
Market Slowdown and Buyer Caution
New listings in prime central London fell 14% compared with the previous quarter, while available stock dropped 6% year-on-year. Transactions declined 9.1% in the third quarter, with the sharpest slowdown in the £2m-£5m bracket, where sales fell 22.3%. Coutts' head of lending, Alex Webster, said buyers and sellers at the top end were taking a more cautious approach even before the chancellor's first budget.
High-End Transactions Remain Active
Separate data from estate agent Savills shows activity at the very top of the market remains robust. There were 26 transactions above £10m in the third quarter, bringing the total over the past year to 127, worth a combined £2.88bn.
Interest Rate Outlook
The Bank of England has held its base rate at 3.75% since December, but volatility in bond markets has pushed up swap rates that influence fixed-rate mortgage pricing. Markets expect the monetary policy committee to raise rates to 4% next week, which would be the first increase in three years.
