If you’re looking to buy a new home in prime central London this year, it might be helpful to know where to look for a discount.
Looking at properties valued at over £1 million which were listed online between December 1, 2024 and November 30, 2025, Investec Bank found that, although supply had grown, many postcodes had seen a greater number of price reductions — with discounts getting bigger.
“2025 was a steady but subdued year for the property market and, as a result, many sellers will have experienced little to no buyer interest, particularly across the more inflated regions of the South and London,” explained Marc von Grundherr, director of Benham and Reeves.
“It’s only natural that a sizeable proportion have resorted to reducing their asking price expectations in order to secure a sale and, as a result, there remains a strong opportunity for buyers to find a discounted property today.”
Which prime postcodes have seen the biggest discounts?
Canary Wharf is a new entrant to the “Premier League of postcodes”, says Investec
UCL School of Management
According to Investec’s research, properties in St John’s Wood (NW8) saw the biggest price reductions last year.
The average discount was 14.8 per cent; for a typical property in the area costing £2.54 million, this is equivalent to £375,920.
This also represents a considerable increase on 2024, when the average price reduction stood at just 8.4 per cent.
Next up is Knightsbridge (SW7), where the average discount was 12.7 per cent. The previous year, discounts stood at 8.2 per cent.
In Bayswater (W2), discounted homes were reduced by an average of 12 per cent, up on 10.5 per cent the previous year. A typical property in the area costs £2.32 million.
Behind Bayswater is Chelsea (SW3), with a 11.3 per cent average price cut, and Canary Wharf (E14), with 11.1 per cent. Properties in the two postcodes cost £3.01 million and £1.33 million respectively.
Canary Wharf is a new entrant to what Investec calls “the Premier League of postcodes”, with an increase in the number of £1 million + homes listed over the past year.
The cost of space in E14 has multiplied too: the price per square foot in 2024 was £1,087, rising to £1,156 in 2025, indicating strong demand relative to supply.
In Hampstead (NW3) and Fulham (SW6), however, price reductions have become smaller over the past year. In leafy NW3, the average price cut was 9.5 per cent, down on 11.3 per cent in 2024.
Likewise, in SW6, average reductions were just 6.8 per cent last year, compared to 7.4 per cent previously. Homes in the area cost an average of £1.94 million.
Price per square foot: where is space getting cheaper?
But as well as looking at the size of the price cuts, Investec analysed the changing price per square foot in prime postcodes to show where the cost of space is going down.
A square foot of space in Bayswater, for example, was £129 cheaper in 2025 than in 2024, at £1,616 per square foot, compared to £1,745.
In St John’s Wood, likewise, the price per square foot fell by £47 last year, from £1,516 in 2024 down to £1,469.
Kensington, Battersea and Hampstead also saw reductions of £35/sqft, £26/sqft and £20/sqft respectively.
In Knightsbridge, the price per square foot remained the same, at £1,857. But values increased in Canary Wharf (+£69/sqft), Chelsea (+£46/sqft), Wimbledon (+£28/sqft) and Fulham (+£19/sqft).
Of these postcodes, Chelsea commands the highest price per square foot, at £1,980, followed by Knightsbridge (£1,857) and Kensington (£1,828).
“Investec’s research shows that London’s prime market is increasingly defined by postcode-level differences,” says Carlos Mendes, private banker at Investec.
“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.”