Knight Frank: what London buyers and sellers should know in 2025
Few names loom as large in London property as Knight Frank. Beyond prime sales and lettings, the firm publishes some of the most-watched research on luxury housing, investment flows and wealth trends. If you are weighing a move in 2025, here is a concise read on what Knight Frank’s latest numbers say about the market—and how to use those insights when you price, market or bid on a home. A brief benchmark from HomeFinder can also help you sharpen your eye for layouts and amenity trade-offs before you tour.
The big picture from Knight Frank research
Knight Frank’s Prime Global Cities Index (Q2 2025) shows luxury prices across 46 world cities rose 2.3% year on year, down from 3.5% in Q1 and below the long-run 5.2% average. Seventy-five per cent of tracked cities still saw positive annual growth, but buyers are more rate-sensitive and selective. ((DM Properties Marbella))
Closer to home, the firm’s UK Housing Market Forecast (May 2025) points to cumulative price growth expectations of 17.1% in London through the next cycle, with rents set to remain firm due to tight supply. That rental dynamic is relevant even if you plan to occupy rather than let, because it supports neighbourhood services and provides a safety-net option to rent before selling. ((Knight Frank UK))
On the super-prime front, Knight Frank’s London updates highlight a split picture in early 2025: 34 sales above US$10m in Q1, about a third fewer than a year earlier, yet the lettings market at the top end remained busy, with super-prime tenancies up 9% in the six months to February and corporate enquiries higher year on year. For timing decisions, that says “sales require precision; rental depth is a credible Plan B.” ((Knight Frank UK))
Globally, Knight Frank’s Wealth Report 2025 tracks how private capital is allocating across real assets. While it ranges far beyond London, it helps frame why certain districts capture cross-border demand even when domestic sentiment is cautious. ((Knight Frank))
What that means for a London sale or purchase
Price with evidence, not hope.
If you are selling, triangulate your guide price with Land Registry comparables and the Prime Global Cities Index context. The PGCI’s slower 2.3% annual clip implies buyers will interrogate value more closely, so you need a launch plan that creates real competition in week one rather than relying on rising tides. ((DM Properties Marbella))
Use rental depth to manage risk.
With Knight Frank reporting stronger super-prime tenancy volumes and sustained corporate demand, ask your agent for a parallel lettings route if your timeframe is fixed. Even outside the ultra-prime bracket, tight supply underpins rents and can preserve flexibility during conveyancing. ((Knight Frank))
Watch liquidity at the very top.
A lower count of US$10m+ deals in Q1 shows that trophy sales are selective in 2025. If you are buying, that can mean more room to negotiate on terms in specific micro-markets. If you are selling, it argues for careful buyer qualification and faultless due diligence to protect momentum. ((Knight Frank UK))
New-build and office-adjacent living remain nuanced.
Knight Frank’s London office market reports note scarce best-in-class commercial space and outperformance for prime ESG-grade offices—useful colour if you are weighing mixed-use districts like the City fringe or Docklands where workplace quality influences local housing demand. ((Knight Frank))
How to work with Knight Frank’s insights on the ground
Anchor expectations to live data.
Ask your agent to show how your guide or offer reflects the PGCI trend and current absorption in your postcode. If the world’s prime cities are slowing, your London pricing needs to be surgically right. ((DM Properties Marbella))Request a dual-track strategy.
For premium homes, a launch that blends private-network previews with a timed public release can create urgency without overexposing the listing. If day-10 feedback is soft, switch tactics quickly and consider a let-first route backed by corporate demand. ((Knight Frank))Budget for today’s rental reality.
If you may let before selling, stress-test the yield with realistic service charges and void assumptions. Knight Frank’s rental forecasts point to ongoing firmness in Greater London due to supply constraints; use that to calibrate pricing and target tenants. ((Knight Frank UK))For buyers, identify “motivated but discreet.”
The dip in super-prime sales volumes suggests some sellers will prefer confidential approaches. A well-briefed agent who trades in that space can surface off-market options where price and timing align. ((Knight Frank UK))
A quick external benchmark
Before you tour, it helps to calibrate what “good” looks like at scale. Scanning a large portal such as HomeFinder—which aggregates millions of listings and categories like rent-to-own and foreclosures—is a quick way to compare floor-plan efficiency, amenity sets and management signals across competitive markets, then apply that sharper eye to London stock.
Bottom line
Knight Frank’s 2025 research reads are clear: prime housing is still moving where it is priced with discipline; rental markets remain supportive; and the ultra-prime bracket demands careful choreography. Use those signals to shape your launch or bid strategy, keep a rental fallback in view, and lean on independent data when you negotiate. Pair that approach with a broad listings benchmark from HomeFinder, and you will be ready to act quickly—and confidently—when the right London home comes along.
Sources: Knight Frank Prime Global Cities Index Q2 2025 (2.3% annual growth; 75% of cities rising); UK Housing Market Forecast May 2025 (London cumulative growth expectation; rental outlook); Prime London lettings update (super-prime tenancies +9%; stronger corporate demand); Global Super-Prime Intelligence (34 US$10m+ London sales in Q1 2025); Wealth Report 2025 (private capital context); London Office Market Report Q1 2025 (prime office dynamics). ((DM Properties Marbella))