The Q1 2026 property market has felt steady rather than spectacular. Activity has not stalled, but both buyers and tenants have become more selective. The strongest common theme across the latest TwentyCi, Rightmove and Zoopla data is that supply has improved, affordability remains under pressure, and success now depends far more on pricing and presentation than it did during the more frantic markets of recent years.
In the sales market, there is more stock available and that is giving buyers greater choice. TwentyCi reports that new instructions rose by 5.1% year on year in Q1, while sales agreed were 3.3% lower than the same period in 2025. However, that comparison needs context: Q1 2025 was boosted by the stamp duty deadline. Rightmove’s March data shows sales agreed only 2% below last year and still 5% ahead of 2024, while Zoopla says overall sales levels are holding steady even though early-stage buyer demand has weakened. In other words, committed buyers are still transacting, but they are negotiating harder and taking longer to decide.
London remains one of the more challenging parts of the market. TwentyCi says Inner London saw the sharpest decline in sales agreed, down 12.5% year on year, while fall-through rates in Inner London rose to 27.0%, meaning more than one in four agreed deals failed to reach exchange. It also notes that time to sell has risen across London, and Rightmove says the volume of homes for sale is at an eleven-year high for this time of year, keeping competition strong and forcing sellers to be more realistic on asking price. For higher-value central London stock, that means pricing accuracy matters more than ever.
The lettings market is also changing. It is still expensive, but it is no longer as overheated as it was in 2022 and 2023. TwentyCi reports rental supply up 18.8% year on year and Inner London let-agreed prices are down 4.2%. Rightmove says tenant demand and supply are becoming more balanced, London rents rose just 0.7% in Q1, and more than a quarter of listings saw a price reduction. Zoopla tells a similar story, with rent growth slowing to 1.9%, competition easing, and renters having more room to negotiate. This is not a tenant’s market yet, but it is a more normal market than the one landlords and renters were dealing with two years ago.
For Pimlico and Westminster, the broad direction is clear. Sales are still happening, but the market is less forgiving. Rightmove’s sold-price data suggests Pimlico has held up better than the wider Westminster average over the last year, though both areas remain highly price-sensitive and heavily influenced by flat values. On the lettings side, Westminster rents remain very high in absolute terms, but official data shows they have started to fall year on year. That suggests landlords can still achieve strong results for well-presented, well-located homes, but aspirational pricing is far more likely to be challenged than it was at the height of the rental squeeze.
Our expectation for the months ahead is not for a frozen market, but for a more selective one. Sellers who price correctly from launch and keep deals tightly managed should continue to find buyers. Landlords should still benefit from Westminster’s status as one of London’s most desirable rental locations, but they will need to work harder on pricing, presentation and flexibility. In both sales and lettings, Q1 2026 has rewarded realism.
Pimlico and Westminster summary
Sales: Expect a market with demand, but not urgency. Inner London buyer demand is softer, fall-through risk is higher, and buyers have more stock to compare against. In Pimlico and Westminster, that should translate into longer decision-making, more negotiation, and a bigger premium for correctly priced, turnkey property.
Lettings: Expect less “panic renting” and more price testing. Westminster rents are still high, but the borough is now showing year-on-year rent declines, while Inner London and national data both point to improving supply and weaker competition. For Pimlico, which is heavily flat-led, the likeliest outcome is a more balanced market where good stock still lets well, but overpricing is more quickly exposed.
