Market Insights May 2025

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

If you have any questions regarding the market or requirements you’d like to discuss, please don’t hesitate to contact me 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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Divergence between discretionary and needs-based locations

The property market remains incredibly nuanced and there is significant variation in market dynamics and activity levels within different locations, price points and property types. 

Kensington and Chelsea were the London neighbourhoods with the highest volume of sales last year, largely because they are examples of locations which attract both needs based domestic buyers, as well as more discretionary international buyers. We are seeing strong demand continue there from HNWs and UHNWs, who are purchasing a longer term home for work or children’s schooling rather than as a ‘nice to have’ or status symbol.

In contrast, taking Mayfair for example, more than 70% of buyers and sellers are international, many of whom are highly discretionary and, as a result, transactional volumes are down 51.5% year on year and just 5% of properties for sale are under offer.

In the family house market where pricing is right and sellers are realistic and motivated, good family homes are selling quickly, and we have just secured a best in class house for a client in Queens Park against strong competition. For sellers who are bold enough to undercut the market, some have been able to create a bidding situation to push the price up, and we have seen several cases of this in recent weeks.

Case study: The importance of acting quickly on good value

In this sensitive market we have seen many buyers fixated on securing a discount, but it’s just as important to recognise when a property is priced competitively and represents good value - and be prepared to move quickly to secure it.

We have just exchanged on a rare and highly sought after lateral £5.5m house behind Sloane Square, which had been discreetly shown to only a handful of buyers with a distinct message that the American owner would only sell for the asking price, which the comparables clearly showed was good value.  

An established buying agent had shown the property to their clients a week previously and advised them to bid below the asking price. A week later as part of our first viewing tour, we showed the house to our own client, a British oil trader seeking a London pied a terre for him and his family. We advised him on the pricing and rarity of the property which he completely recognised. 

He loved the house and straight after the viewing, we drove to a lawyer’s office and within one hour we had submitted an asking price offer complete with proof of cash funds, an endorsement from our lawyer, a building surveyor lined up to go in 48 hours later, the title documents downloaded and confirmation that we could exchange contracts within 5 working days. This required us to assemble a focused and committed team of lawyers, surveyors and bankers who were willing to work at speed through the weekend to ensure the terms were met.

In response, the competing buying agent advised his cash clients to exceed the asking price and offer £250,000 above. However, the seller rightly recognised that this knee-jerk reaction called the buyer’s credibility into question and he felt more comfortable proceeding with our client – despite the significant offer price difference. The selling agent vouched for our track record and we had instantly recognised the value of the property and offered without question. We exchanged within 4 working days.

This demonstrates how critical it is for buyers to have context on prices and act strategically according to the individual situation. It’s not always easy to do, but it’s imperative for securing the best properties and not overpaying.

Turnkey properties continue to outperform

Regardless of location, genuine turnkey properties are continuing to command premiums as most buyers remain reluctant to embark on a major refurbishment due to delayed timescales, pedantic planning rules and the uncertainty of costs which comes with a long-term project, as contractors are unable and unwilling to offer fixed prices.  

London has recently been listed the second most expensive city in the world to develop property (Geneva being ranked number one) which explains why so many are preferring to pay a premium for the immediacy of securing a beautifully finished home. 

The good news for buyers seeking turnkey is that the exit of some UHNWIs moving away from London has brought some exceptional homes to the sales and rental markets, which are being offered discreetly and are properties which were never intended to be parted with and would not ordinarily be available. This is amplifying the two-tiered market of sellers being able to command their price for truly turnkey properties, versus all other sellers who are having to price competitively to gain traction.

My guest column in The Times

I was honoured to be asked to author the House Guest column in The Times, and I chose to explain how concerns over inheritance tax and upcoming pension reforms are prompting the Bank of Mum and Dad to fund more high value purchases than ever before.

As part of their inheritance tax planning, they are gifting substantially more - and doing so earlier - to help their children and grandchildren onto the property ladder, often buying properties outright rather than providing a deposit.

Our team have worked with parents to buy properties for children as young as four years old through to those in their 20s and 30s, and I shared my insights into this growing trend for high net worth parents.

Read the article here if you’re a Times and Sunday Times subscriber.

Eccord is hiring

We are looking for a highly organised Coordinator to support our busy property management and finance team in a part-time (25-30 hours per week) position.

The flexible role will include administrative support and assisting with accounts, invoicing and tenancy arrangements. It would suit someone who enjoys working within a rewarding environment with meticulous accuracy and attention to detail.

We would be especially pleased to recruit someone from within our existing network, so if someone comes to mind who might be a good fit, we would love to hear from them! Previous property experience would be beneficial but is not essential. More information about the role can be found here and please feel free to contact me in complete confidence at jo.eccles@eccord.com.