London’s housing market update for Q2 2025 shows collapsing sales volumes, weakness at both the top and bottom of the market, yet resilience in mid-sized homes and terraced houses. Below, we break down the key figures with supporting charts and analysis.
Transaction Volumes Hit Record Low
Just 5,200 sales were recorded in Q2 2025 — an unprecedented figure.
This represents a 65% drop compared to Q2 2024 and a 63% decline from Q1 2025
Unless there are unusual delays or errors in Land Registry reporting, this marks the one of the weakest quarters for London property transactions in history
Price Pressures at Both Ends of the Market
The overall London median price per square metre fell by 0.7% compared to Q2 2024
The affordable segment began to soften after strong gains in Q1 2025. The bottom quartile of prices per square meter (threshold for the 25% cheapest homes) slipped 0.5% against Q2 2024
The top quartile of prices per square meter (threshold for the 25% most expensive homes) continued to decline, down 2.4%
Median Prices Per Square Meter: Slight Overall Decline
Large homes (100+ sqm) dropped 6.3%, while small homes (under 50 sqm) fell 4.0% from Q2 2024
In contrast, mid-sized homes (50–100 sqm, around half of all sales) were more resilient, with prices rising 1.6%
Property Type Breakdown
Terraced houses were the only property type to see moderate growth, with the median price per square meter rising 1.1% from Q2 2024. These make up about 30% of sales, with a typical size of 95 sqm
Flats, which dominate the market at 60% of sales, saw prices fall 1.4%. The median flat sold in Q2 2025 was 61 sqm in size
