Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Winkworth Reports Slower Sales and Stronger Lettings in Prime Central London

Buyer demand in prime central London weakened during the second quarter of 2026, while tenant registrations increased, according to Winkworth’s latest market report. The estate agency found that committed buyers continued to transact where homes were priced realistically.

Winkworth reported a 25% year-on-year increase in tenant registrations during the quarter, while sales enquiries fell by more than 10%. This reflects a slower sales market alongside continued strength in lettings.

The agency’s analysis of sales over the past two years showed that vendors who reduced asking prices early to reflect market conditions sold their homes more quickly, without accepting significantly larger discounts. Properties that were repriced promptly achieved, on average, more than 98% of their final asking price. In contrast, homes that remained overpriced often stayed on the market for a year or more before larger reductions were agreed.

Winkworth’s report also examined the impact of collapsed sales. Failed transactions now tend to occur later in the conveyancing process and typically add around four months to the selling process, while reducing the eventual sale price by about 3%.

The report highlighted changing buyer demographics in prime central London. Gulf and European buyers remain active in Knightsbridge, American purchasers continue to target family homes in Notting Hill, and UK-based parents are increasingly buying in Pimlico, attracted by comparatively lower prices. Across much of Winkworth’s network, around seven in ten buyers are now UK-based, with property chains becoming more common in a market traditionally dominated by cash purchasers.

In the lettings market, Winkworth noted that the Renters’ Rights Act is beginning to influence tenant behaviour, particularly around the £100,000 annual rent threshold, where different tenancy rules apply.

Looking ahead, Winkworth said political and fiscal uncertainty continues to weigh on sentiment ahead of the Autumn Budget. However, with interest rates remaining on hold and needs-driven domestic buyers continuing to transact, the agency expects realistically priced homes to continue attracting demand.