Values of homes in prime areas of London fell yet again last month, albeit at a slower pace than previously.
LonRes days there were 6.7% more transactions in May than the same month a year ago, but 13.1% fewer than the 2017-2019 (pre-pandemic average) May average.
However, the number of properties going under offer was 8.1% higher than a year ago and 8.8% higher than the 2017-2019 (pre-pandemic average) May average, potentially indicating rising transaction volumes in the next few months.
Supply remains at a high level, but growth has plateaued; new instructions in May were 2.2% higher than the same month last year and 10.1% higher than the 2017-2019 May average.
Stock on the market at the end of May was 5.9% higher than a year earlier and 13.0% above the level five years earlier (May 2021).
The number of price reductions are significantly above historical trends, with a 19.4% rise in May compared to last year.
Every month so far in 2026 has recorded the highest ever number of reductions for that month.
Transactions from March to May 2026 were down 12.7% compared to March to May 2025 and were 5.0% below the 2017-2019 (pre-pandemic) average for the time of year.
But LonRes says underlying demand is relatively strong.
New instructions were 4.0% higher between March and May compared to last year and 24.4% higher relative to their 2017-2019 average.
Withdrawals have seen large increases, rising by 43.2% in March through May compared to the same three months last year.
Average achieved prices across all prime London fell by 5.1% on an annual basis in May, a slower rate of fall than April.
On a monthly basis, prices are picking up from the low point reached in February and March but they remain low compared to historical trends – they are 4.7% below their 2017-2019 (pre-pandemic) average.