The opening weeks of the year have brought a welcome sense of stability to the Pimlico and Westminster markets. After a prolonged period of caution through much of 2024 and early 2025, January has marked a subtle but important shift in sentiment, particularly among motivated buyers who had been waiting for clearer signals on pricing and interest rates.
This local improvement reflects a wider national narrative. Recent commentary from the Financial Times, The Times, and The Telegraph has pointed to a gradual thawing in the UK housing market, with major lenders reporting increased mortgage approvals and improved buyer confidence compared to the same period last year. While expectations remain grounded, the prevailing view is that the sharpest phase of correction is now largely behind us.
Market Activity and Buyer Sentiment
Buyer enquiry picked up noticeably from the second week of January, following a slower than usual start immediately after the festive period. Viewings are up on late 2025 levels, with the strongest activity concentrated in well priced flats between £750,000 and £1.5m, particularly those offering lateral layouts, good natural light, and a sense of proportion rather than sheer square footage.
This aligns closely with our own experience and commentary from The Financial Times, both of which have noted that buyers are returning to the market with a more pragmatic mindset. Rather than waiting for ideal conditions, many are now accepting that interest rates are unlikely to fall dramatically in the near term and are focusing instead on securing the right property at the right price. This sentiment is clearly mirrored in Pimlico and Westminster, where decision making feels more purposeful and less tentative.
Sales and Pricing
Agreed sale prices continue to reflect a market that rewards accuracy. Properties launched at sensible levels are attracting competitive interest, often within the first three to four weeks. Conversely, homes that are optimistically priced are still being bypassed, regardless of quality.
Recent coverage from The Times suggests that pricing across much of the UK has stabilised, with modest growth forecast in prime central locations where supply remains constrained. Locally, achieved prices are broadly stable compared to late 2025, with some modest upward pressure on best in class stock. There is no evidence of widespread price growth, but equally the downward corrections seen over the past two years appear largely complete.
Prime addresses, period conversions with strong ceiling heights, and properties with outdoor space remain the most resilient.
Stock Levels
Supply remains relatively constrained. While new instructions have increased slightly since January, overall stock levels are still below long term averages. This mirrors wider reporting from Rightmove, who highlighted that many homeowners are choosing to stay put, particularly those who secured historically low fixed rate mortgages.
In Pimlico and Westminster, many potential sellers remain cautious, opting to test the market only once they are confident of achieving a credible outcome. This ongoing imbalance between supply and demand continues to underpin values, especially for well presented family flats and upper floor maisonettes.
The Lettings Market
The rental market remains robust, with demand continuing to exceed supply. This reflects a structural undersupply across the private rental sector, a theme that is particularly pronounced in central London.
Rents across Pimlico and Westminster are holding firm following the sharp rises of recent years. While tenants are more discerning, there is no meaningful softening in achieved rents for good quality property. Well maintained homes continue to attract strong interest quickly, particularly two bedroom flats close to transport links and local amenities.
Outlook
The market entering spring feels healthier than it has for some time. Confidence is returning slowly rather than exuberantly, which is widely viewed as a positive sign. We believe the market is stepping into a more balanced phase, driven by realistic pricing and genuine lifestyle decisions, providing a stronger foundation for sustainable activity.
Locally, buyers and sellers are increasingly aligned on value, and transactions are being driven by long term planning rather than speculation. As we move further into the year, we expect steady levels of activity, with pricing discipline remaining the key determinant of success.
If you would like a more tailored view of how the current market applies to your specific property or search, we would be delighted to advise.
