Investec reveals that London’s prime property market reshuffles

Investec Bank plc (Investec), a leading international financial services provider, today releases latest findings from its Property Index 2026, revealing that London’s £1m+ property market is increasingly fragmented, with pricing, discounts and buyer leverage varying significantly between neighbouring postcodes.

Investec’s analysis shows that nearly 7,000 prime homes were listed across London in 2025, a 12% increase year-on-year. Despite the rise in supply, discounts on £1m+ properties remained elevated across many postcodes, underlining the importance of postcode-level comparisons when assessing value in the prime London market.

In several central London postcodes, average discounts widened between 2024 and 2025. In Bayswater (W2), average reductions exceeded 10% in 2024 and widened further to 12.0% in 2025. St John’s Wood (NW8) recorded an average discount of 14.8% in 2025, while Knightsbridge (SW7) saw average reductions widen to 12.7%. Investec’s data shows that buyer negotiating power can differ materially between neighbouring areas.

Table 1 shows average listing prices and discounts by postcode, based on Investec’s analysis of Homesearch listing data for £1m+ properties.

Table 1: Average listing prices and discounts (Investec Property Index 2026)

Investec’s research shows that the number of £1m+ homes listed in Canary Wharf (E14) increased in 2025 compared with the previous year. Average prices stood at £1.33m, while discounts averaged 11.1%. At the same time, the cost of space increased from £1,087 per square foot in 2024 to £1,156 in 2025, indicating stronger demand relative to supply in that postcode.

Comparing the cost of space across London highlights further differences. In 2025, Wimbledon (SW19) averaged £983 per square foot, compared with £1,828 in Kensington (W8) and £1,616 in Bayswater (W2). Fulham (SW6) averaged £1,174 per square foot, compared with £1,980 in neighbouring Chelsea (SW3). Investec’s data shows that relatively small postcode moves can result in large differences in the cost of space.

Table 2: Price per square foot (Investec Property Index 2026)

Sales timelines further highlight differences in buyer leverage. Investec’s analysis shows that homes in Wimbledon sold in an average of 78 days in 2025, while properties in St John’s Wood took more than six months to agree a sale, giving buyers more time to negotiate in slower-moving areas.

Carlos Mendes, private banker at Investec, commented: “Investec’s research shows that London’s prime market is increasingly defined by postcode-level differences. Buyers don’t necessarily need to change where they live in the capital to find better value. By comparing neighbouring postcodes, it’s often possible to secure more space, benefit from wider discounts and gain greater certainty on timing, while remaining close to work and day-to-day life.”

RICS Chief Economist, Simon Rubinsohn, added: “The latest Investec Property Index shows a sharp rise in listing in the Home Counties which aligns with RICS data pointing to an increase in the amount of stock on agent’s books. Against this backdrop, it is unsurprising that both reports suggest that the balance of power has shifted in favour of buyers providing greater scope for discounts to be secured off list prices. However, it is likely that with Budget out of the way, and the measures announced less penal that feared, the prime market could begin to settle down with sentiment gradually improving through the course of 2026.”

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