The JLL Q4 2025 Prime Central London Report tracks activity across the central London housing market. The report incorporates the results of our quarterly JLL Prime Central London Index.
The JLL PCL Index recorded annual price falls of 7.3% in Q4 2025, following a 1.6% quarterly decline. Higher debt costs have impacted buyer activity in the sub £2million market, while the ongoing impact of changes to taxation for non-domiciled residents is also affecting the top end of the market. Buyers saw opportunities to negotiate on asking prices as uncertainty peaked ahead of the Budget; average discounts off initial asking prices reached -12.1% in Q4, up from -11.8% in Q3.
In the lettings market, average rents ended the year only marginally higher than the end of 2024 (+0.3%). There were almost 1,000 homes let in Q4, 10% more than a year prior, with more sustainable rental growth encouraging tenants to move home rather than renew.
There are clear opportunities in 2026, particularly for domestic buyers and investors looking to take advantage of lower values and less competition.
