A Shifting Property Landscape: What’s Really Happening in London?
London’s property market has entered a rare moment; a period where renting and buying are both moving in ways that defy historic patterns. In this special podcast episode, three senior industry voices from The Collaborative London, Sotheby’s, and Knight Frank unpacked the forces reshaping behaviour on both sides of the market.
From buyer hesitation and pricing corrections to unprecedented rental demand and the rise of “rent-then-buy” flexibility, this conversation provides critical insight for investors, landlords, renters, and anyone trying to understand what London really looks like going into 2026.
Below is a full editorial breakdown of the episode, highlighting the most important trends and takeaways.
Speakers:
- Jaffar Saraj — Co-Founder & Director, The Collaborative London
- Stephanie Russo — Director Consultant, Sotheby’s International Realty
- Chris Mulry — Senior Sales Consultant, Knight Frank
Sales Market Snapshot: “Busy, but the most challenging in 15–20 years”
📌 Key insight from Chris Mulry, Knight Frank
Despite sensational headlines, the market is far from inactive; but it is highly selective. Chris noted that while many describe it as the hardest market in decades, turnkey and correctly priced properties are still selling.
What isn’t selling?
- Homes with very high service charges
- Lower ground units without outdoor space
- Properties above commercial premises
- Any stock needing compromise in a risk-averse environment
In this climate, buyers want zero compromise and immediate usability.
Meanwhile, Jaffar highlighted an unprecedented phenomenon:
“It’s pretty much 100% a buyer’s market.”
Properties in Belgravia trading at £1,200–£1,300 psf for unmodernised stock, levels described as “unheard of” in prime districts, illustrate just how deep the price correction has become.
However, the bigger issue may not be price… but confidence.
Buyer Psychology: “I now have to convince them this is London.”
📌 Insight from Jaffar Saraj, The Collaborative London
Buyers are comparing London to global hotspots like Dubai and questioning long-term upside. Jaffar’s challenge isn’t just justifying the deal; it’s restoring faith in London itself.
This aligns with broader market trends we outlined in:
👉 Why Prime Central London Is the Place for Sophisticated Investors
Despite volatility, high-quality assets purchased at the right entry point remain extremely compelling investments.
Lettings Market: “One of the busiest years we’ve seen.”
📌 Key insights from Stephanie Russo, Sotheby’s
While sales show price sensitivity, the lettings market is exploding; and not just seasonally.
Why the rental market is so strong:
- Mortgage rates + uncertainty → More households choosing to rent “until things settle.”
- Short-lets booming — Stephanie highlights record-breaking summer demand.
- Luxury renters increasing — High-net-worth tenants seeking immediate, flexible living options.
- Renewal rates up 60% — meaning less stock returning to market and deeper shortages.
Stephanie shared two standout trends:
- Rent-then-Buy Behaviour Is Rising
Short-let tenants are taking 3-month rentals, extending to 6 months…
…and then buying the property outright after falling in love with it.
This now occurs in roughly 15% of high-end cases.
- Short-let Market Has Transformed
June saw double the short-let volume of the previous year, an astonishing shift.
Inventory Shortage: “There’s just no stock.”
One of Chris’s clients attempted to rent a house in Greenwich before committing to buy.
Even after widening the search radius to over a mile, there was not a single comparable property available.
This highlights a crucial fact for landlords and investors:
Prime rental stock is now one of London’s scarcest assets.
This scarcity contributes to the resilience of rental pricing, even if it stops short of steep increases.
The Power of Presentation: Staging, Furnishing, and CGI
A major shared lesson across both sales and rentals:
Staging dramatically increases results.
Stephanie noted:
✔ CGI / virtual staging = 30% more online clicks
✔ Full furnishing = higher rents + faster lets
✔ Turnkey presentation = better tenant retention
However, Chris added a critical caution:
“Virtual staging only works if the viewing experience matches the marketing.”
If reality falls short, expectations collapse; and deals fall through.
This ties to insights from our design-led article:
👉 Art in the Home — Elevating Everyday Living in Prime Central London
Where the emotional experience of a space directly impacts its market performance.
Key Market Relationship: “When rentals are thriving, sales usually slow — but not today.”
Historically, strong rental markets coincide with weak sales markets.
But today, the situation is unusual:
- Sales are selective but active
- Rentals are at multi-year highs
- Short-lets breaking records
- Buyer confidence is low, yet investor opportunity is high
We’re witnessing a market where both sides are moving, just not in the same direction.
What Happens Next? (6-Month Outlook)
Stephanie sees three defining forces:
- Rents aren’t likely to rise much further
More stock is expected to return to market.
- Short-lets will keep climbing
Driven by flexibility, lifestyle, and uncertainty.
- Upcoming Budget = Market Inflection Point
The government’s decisions will heavily influence:
- stamp duty
- investor confidence
- supply flows
- buyer vs renter behaviour
Chris adds an important reminder:
“We’re at the height of uncertainty; everything changes after the Budget.”
Final Thought: A Market of Divergence, Strategy… and Opportunity
London in 2025 is a market defined by contradictions:
- Sales: selective but full of deep-value opportunities
- Rentals: high demand, low supply, rising renewal rates
- Short-lets: booming beyond seasonality
- Buyers: risk-averse but rewarded when bold
- Landlords: benefiting from unprecedented conditions
For investors, landlords, and renters, understanding the dynamics of both sides is essential.
This podcast was a masterclass in doing exactly that.
