At Winkworth, we’ve seen a clear shift in tone across Prime Central London (PCL) as 2026 gets underway.
After several years of political turbulence, tax reform and global uncertainty weighing on confidence, the conversation is now changing.
While values adjusted materially through 2025, leading research teams are now pointing to signs that price declines are easing — and may be nearing their end.
For buyers and sellers in PCL, that potential turning point matters.
From Decline to Stabilisation
Recent forecasts suggest that Prime Central London prices are likely to remain broadly flat over the next 12 months, rather than continuing the downward trajectory seen in 2024 and 2025.
Several agencies now expect:
- 0% to +3% movement in 2026
- Around 2% growth in 2027
- Cumulative gains of 9–12% by 2030
This marks a subtle but important shift from earlier expectations of continued decline.
After a 4.8% drop in average PCL prices during 2025 — and a 23% adjustment over the past decade — the market appears to have absorbed much of the policy and taxation uncertainty that dominated recent years.
In fact, Prime Central London values have effectively reset to levels last seen more than a decade ago, creating a very different entry point for buyers compared to the peak years.
Budget Clarity Released Pent-Up Demand
The Autumn Budget appears to have been a key catalyst.
Once clarity emerged around high-value property taxation — including the introduction of the High Value Council Tax Surcharge — activity improved through December and into the New Year. The measures were viewed as less punitive than many had feared.
Importantly, renewed activity did not immediately translate into price growth. Instead, it reinforced a stabilisation narrative:
- Demand returning
- Pricing discipline remaining
- Transaction momentum improving
For Winkworth offices across Prime Central London, this has translated into stronger early-year enquiry levels, particularly from buyers who had been waiting on the sidelines for fiscal certainty.
The Rate of Decline Is Slowing
One of the most telling signals is the pace of price movement.
Prime London price declines eased from -1.0% in Q3 to -0.4% in Q4, suggesting the sharpest part of the correction may be behind us.
Markets rarely pivot dramatically — they stabilise first. What we are now seeing appears to be that stabilisation phase.
International Buyers Re-Engaging
There are also early signs of renewed overseas investment.
With tax frameworks clarified and sterling still relatively competitive, buyers from the US, Middle East and parts of Asia are beginning to re-engage — particularly at the upper end of the market.
For internationally mobile capital, Prime Central London continues to offer:
- Global city stability
- Strong legal framework
- Transparent property rights
- Long-term wealth preservation
This demand tends to be strategic and long-term in nature — and it can play an important role in underpinning pricing floors.
Opportunity in a Reset Market
While mainstream UK markets are currently outperforming prime, this divergence itself creates opportunity.
Prime Central London now presents:
- Rebased pricing
- More negotiable conditions
- Greater stock choice
- Reduced competitive frenzy compared to peak years
For value-focused buyers, this environment offers compelling long-term positioning.
Winkworth’s View for 2026
At Winkworth, our assessment is measured but constructive.
- The era of broad price decline appears to be fading
- Transactional confidence is improving
- Pricing remains sensitive but realistic
- 2026 looks set to be a year of consolidation rather than contraction
For sellers, this means strategic pricing is critical — but panic discounting is unnecessary.
For buyers, the current window may represent one of the more attractive entry points seen in over a decade.
Thinking of Buying or Selling in Prime Central London?
If you are considering your next move, our local Prime Central London teams can provide:
- A detailed market appraisal
- Advice on positioning your property in a stabilising market
- Access to motivated buyers and off-market opportunities
Contact your local Winkworth office today for a confidential discussion about navigating the next phase of the Prime Central London market with clarity and confidence.
