Q1 2025: London Housing Market Stalls at the Top, Gains at the Bottom
Based on Land Registry Data
Number of property transactions in London Q1 2025 was down 22% compared to Q1 2024—the lowest quarterly total in three years
The median London property price remained broadly flat year-on-year.
Flats were the only property type to record positive growth in price per square metre (psm), rising 2% compared to Q1 2024.
Homes under 50 sqm saw the strongest median price psm growth (+9%), while large homes over 100 sqm declined by 11%.
The chart below highlights the ongoing decline in transaction volumes. While all price segments experienced a reduction in Q1 2025 , properties priced over £1 million were hit hardest, with a 67% drop in activity.
In Q1 2025, the median price per square meter in London was £7,400—just 1% higher than in Q1 2024. But the market wasn’t evenly balanced:
The lower quartile threshold (marking the 25% most affordable homes) rose 5% year-on-year to £6,000 per square meter.
The upper quartile threshold (marking the 25% most expensive homes) fell 3%, down to £9,300 per square meter.
While these figures reflect London as a whole and don’t account for local differences or variations in property size, they illustrate a pattern that’s been building for some time: buyer appetite remains strongest at the more affordable end of the market, while demand at the top end has collapsed.
Looking at price changes by property size, this tilt toward affordability becomes even clearer:
Small homes under 50 sqm—roughly 20% of all transactions—posted the highest median price growth, up 9% year-on-year. Despite having the highest psm values, their overall lower cost appears to be driving strong demand
Medium-sized properties (50–100 sqm), which make up around 60% of sales, saw modest growth of 3%
Large homes over 100 sqm experienced a sharp 11% fall in median price, even though their median psm value (£6,900) remains below the city-wide median of £7,400
Finally, by property type, flats—the most affordable category—were the only group to see overall price growth (+2%) in Q1 2025.
