Market Insights June 2025

Please see below our June Market Insights outlining the main themes we’re seeing in the prime central London property market this month.

As always, please don’t hesitate to reach out if you would like to discuss any property considerations with myself or the team.

Best wishes

Jo Eccles

Founder and Managing Director, Eccord

+44 (0) 20 7244 4482

jo.eccles@eccord.com

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Competitive bidding takes buyers by surprise

Over the last 12 months, sellers have become increasingly open to accepting offers but have kept asking prices high to maintain a margin for discount, expecting buyers to come to the table and negotiate heavily.

Buyers, on the other hand, have been unwilling to engage with sellers whose asking prices are clearly misaligned with values. Or they have had insufficient knowledge of pricing to confidently negotiate big discounts without causing offence and damaging their credibility with the selling agents. (There’s a fine line between spotting value and knowing where a discount is potentially possible, versus earning a reputation as a buyer going across the market and ‘trying their luck’, which makes selling agents and sellers unlikely to back them as a committed and credible buyer.)

Over recent months however, sellers have finally realised that they need to heavily reduce their asking prices, or price boldly at the outset in order to get traction - and this has paid off. In the past 3 weeks we have seen multiple cases of competitive bidding on properties from £3.5m - £21m and, in the majority of cases, the properties have been on the market for 6 months to 2 years and are now ‘priced to sell’.  

With most buyers believing they hold all the cards, this has taken them (and some buying agents) by surprise, underestimating the number of motivated buyers seeking to purchase ahead of the summer to be moved in and settled by September. We have faced competitive bidding on houses for clients in Belgravia, Chelsea and Kensington in recent weeks and have achieved our best outcomes - and secured the house for less than other buyers were offering - when we have been decisive and able to demonstrate more credibility than the other parties offering.

In the case of one client, a Turkish family renting locally and ready to put down roots, we have just won a competitive bid on a best in class family home in Chelsea. Having viewed 22 homes with them over a fortnight and run all the comparables, they felt confident to offer close to the £4m asking price. Having been outbid by just £50,000, the other party tried to increase their offer, but the seller opted to proceed with our client who was recognised to be a safer bet, despite us requiring a mortgage versus the competing buyer who was paying cash. 

Sellers are keen to transact and maximise the price they achieve, but their priority is a successful sale and most are unwilling to take the risk of accepting a higher offer from a less credible buyer.

Non-doms press ahead despite u-turn rumours

The recent rumours of a possible government u-turn on reform of the non-dom tax regime aren’t enough to change people’s plans, and many of our HNW clients considering a UK exit are continuing to wade through complex tax planning to assess their options.

The inheritance tax element of the non-dom tax changes is by far the biggest driver for our clients leaving, and a softening of the rules would have a significant impact on decision-making. Many are willing to pay tax in the country they live in, but can’t accept their worldwide assets being taxed at 40% when they die. Many of our UHNW clients have significant wealth or family businesses outside of the UK and can’t justify having to pay 40% when they pass on to the next generation - in some cases businesses they share with other family members would need to be sold as a result.

Of our clients who have left the UK, many have done so reluctantly and retained their properties to keep their option to return open. More than 20% of the properties our Rental and Home Management team have taken on in the last six months have belonged to those exiting the UK, many of whom would consider a return if an economically attractive u-turn came to fruition.

London ‘the definition of a global city’

Oxford Economics recently published its 2025 Global Cities Index of 1,000 world cities, with London retaining its second place in the Top 10, after New York.

Noted for its world-class education sector, deep talent pool and improving environmental credentials, researchers stated that ‘London may fit the definition of a Global City more than anywhere else in the world’. The report did note that housing affordability remains a critical pain point, with London residents spending more of their income on housing than residents of nearly every other city in the world. 

In our experience, where people choose to live and why is rarely down to numbers alone. Whilst London is no longer a ‘safe bet’ from a capital growth perspective, we continue to see domestic and international demand, buying for the long-term – or in the case of those exiting, a reluctance to sell their London home.

In my latest Daily Telegraph column I explore the reasons why London continues to attract buyers from all over the world who want to live, work and raise families here, whether the value of their property increases or not.

Landlords prioritise continuity over rent rises

Lower mortgage rates are reducing the financial pressure on some landlords and, combined with a significant increase in supply, we’re seeing slower rental growth as a result. Within our own portfolio, landlords are achieving an average uplift of 2% at renewal and the majority are prioritising retaining quality tenants in situ rather than returning to the market where tenant demand is much more subdued than 12 months ago. 

Considering the costs associated with a new tenancy, such as cleaning, marketing, inventory costs - and the risk of a void period and taking on a new unproven tenant - seeking a new tenant at a higher rent (which is by no means guaranteed) may not be worthwhile.

Tenant demand is strongest in the core market (sub £1,000 per week) and 1 and 2-bed flats are letting relatively quickly. Often only a small reduction in the asking rent can prompt a flurry of activity, as was the case with a luxury 2 bedroom South Bank flat within our rental portfolio which was listed for a month with little interest, before our landlord agreed to a rent reduction of just 1% to £5,499 per month which tipped it into a lower Rightmove bracket, prompting three enquiries overnight.

There is less movement in the prime market however, where the market is extremely price sensitive and, unusually for this time of year, there is a surplus of family homes - many belonging to exiting non-doms. Tenant decision-making is protracted, with tenants typically searching 6 - 8 weeks ahead and making offers in the region of 10% (or more) under the asking price. 

Given the current market conditions, landlords need to tread carefully - especially when dealing with letting agents who may overpromise on rental prices to win their business.