With crisp amber leaves carpeting London’s streets, the time has come for businesses to reflect on their third-quarter showing. Fortunately, autumn has begun on a high note at United Kingdom Sotheby’s International Realty, as the brokerage closes Q3 with a clean sweep, outpacing the broader market and solidifying its leadership in London’s prime property market. Looking to the months ahead, the stage is primed for an exceptional final stretch, with expectations of surpassing 2024's £1.2 billion in sales.
Our Numbers
Between July and September, the brokerage generated total sales of £417 million, with an average transaction value of £6.5 million. Over the same period, 48 properties totalling £16.3 million were let. The firm's momentum is reflected in its growing inventory - by the end of September, the sales pipeline stood at £866 million, with a lettings portfolio valued at £245,000.
Significantly, over 60% of its portfolio comprises sole agency stock, bearing testimony to the trust placed in the firm by discerning sellers and its privileged access to the market's most sought-after properties.
London’s Enduring Appeal
The data reveals a market driven by long-term conviction. Primary residences accounted for 31% of sales, with 27% for secondary homes, 17% for investment properties, and 12% purchased for clients' children - a sign of generational confidence in UK real estate.
The rental market tells a similar story: global relocations drove 53% of lettings, reflecting London's continued pull for international professionals. Whether buying or renting, the trend is clear: the UK property market continues to attract committed capital from serious investors and residents alike.
All Eyes on the Market – A Steady Recovery
The first half of 2025 was a challenging period for London's prime property sector. House prices were falling, buyers were adopting a cautious approach, and stamp duty rates had increased. Further compounding these headwinds was the abolition of the generous non-dom tax regime, which had allowed non-domiciled UK residents to remain exempt from taxes on worldwide income and gains. These policy shifts prompted a significant exodus of high-net-worth individuals from the UK.
However, the latter half of H1 and early H2 marked a turning point. As property prices softened 3-4% year-on-year, the months from June through August delivered steady growth in sales activity. Buyers retained their negotiating power while sellers took on a pragmatic outlook, with discounts on prime London property averaging 8.7%. A 9% year-on-year jump in transaction volumes during June signalled gathering momentum as Q3 approached.
This momentum is reflected in United Kingdom Sotheby's International Realty's August performance, which saw 25 deals completed with an average property value of £9.8 million. Much of this demand comes from overseas buyers capitalising on the weaker pound and keeping the market buoyant – driven in no small part by London's enduring appeal, with its cultural cachet, economic significance, and world-class amenities.
Furthermore, neighbourhoods beyond Prime Central London, including South-West, North, and East London, are proving exceptionally resilient, with strong sale prices and robust demand reflecting buyers' growing preference for space and lifestyle over traditional PCL prestige.
As such, the market is expected to experience a modest upswing by year-end, with analysts predicting 3% growth in 2026.
Final Thoughts
London's prime property market has a demonstrable history of shrugging off policy turbulence and political instability that are often perceived as harbingers of its downfall. This resilience, however, surprises few who understand the UK market's track record. For instance, when the government introduced a 5% stamp duty surcharge on properties above £1 million in 2010, pessimists predicted a slump. Instead, sales of million-pound-plus homes surged 54% year-on-year, a stark reminder that Britain's luxury property sector is notoriously difficult to derail and possesses a remarkable capacity to absorb most shockwaves.
At United Kingdom Sotheby's International Realty, we harness this inherent market strength, transforming apparent obstacles into lucrative opportunities. Our exceptional Q3 performance underscores the firm's ability to thrive when others falter. These results validate the brokerage's commitment to raising industry standards and reinforce client confidence in its capacity to deliver during challenging market conditions. With strong momentum heading into the final quarter, the firm is well-positioned to close 2025 on a record note.
"I am incredibly proud of how our firm is continuing to outperform the market", said Alex Isidro, Managing Director at United Kingdom Sotheby's International Realty. "Despite it being reported that the market has slowed, we have continued to achieve strong sales, with significant deals being completed. On average, our instructions move from being listed to under offer in just 23 weeks - a true testament to the team’s dedication and resilience, particularly given the challenging market conditions.”
Q3 concluded with a significant expansion for United Kingdom Sotheby's International Realty as Chairman and CEO George Azar strengthened the company's global footprint with the launch of Abu Dhabi Sotheby's International Realty - the fourth regional hub to date. Following successful operations in the UK, Dubai, and Saudi Arabia, the Abu Dhabi launch marks a strategic evolution of Azar's regional vision, driven by growing interest among affluent British buyers in Gulf real estate and sustained Middle Eastern demand for Prime Central London property.
"Our team continues to raise the bar for what's possible and I'm proud of what we have accomplished," said Azar. He added: "What we've built so far is significant - eight offices, strengthened ties to the Middle East, and a team of some of the finest talent in the industry – but it's only a glimpse of what's to come. I have faith in the London market and we are committed to driving more growth in the sector."
