Why Best‑in‑Class Prime Assets Continue to Outperform
Despite recent slowdowns across parts of the UK’s prime residential sector, the very top of the market is telling a different story. Recent sales achieved on top-of-the-range CapitalRise-funded projects – in Kensington, Mayfair, Wandsworth and Wimbledon – demonstrate that demand for immaculately finished property in the most desirable micro-locations remains robust. Our data shows that, for the highest‑quality schemes delivered to outstanding standards, buyer appetite is not only present but highly competitive – with sale prices exceeding ‘Red Book’ valuations in many cases.
As a specialist lender in this space, CapitalRise’s own loan book activity supports the view that confidence in the very best of the prime property market is strong, with borrower confidence growing. In Q4 2025, we recorded a 43% uplift in the number of loans completed and a 69% rise in lending values compared with the previous quarter. This indicates both increasing deal flow and a shift toward higher‑value projects.
This aligns with wider market commentary from Knight Frank, who note that post-Budget clarity and the easing of the usual end-of-year slowdown have improved visibility for both buyers and sellers. As a result, developers appear more decisive and activity is expected to continue to pick up as we move further into 2026.
In the section of the market that we serve, CapitalRise is seeing positive lending transaction activity. Several of the properties we have funded have sold recently, and those that have achieved faster exchanges and higher-than-anticipated prices are consistently best‑in‑class, turnkey assets located in the most sought-after prime areas.
For instance, we recently saw a fully-refurbished mews house in Mayfair achieve a substantial six‑figure uplift over its ‘Red Book’ estimate. Equally, a 4,000 sq.ft. apartment in Kensington sold at a double-digit percentage uplift over its original valuation, following a CapitalRise-funded heavy refurbishment. Both schemes were delivered by experienced, hands-on borrowers who showed meticulous attention to detail throughout their respective projects.
Another standout example is a newly built seven-bedroom house in Wandsworth, for which we provided a sales bridge loan with an initial 12-month term. Despite Christmas and New Year falling in the middle of the sales period, the desirability of the property saw it sell – and the loan repaid – in as little as four months. A CapitalRise-funded 6,000 sq.ft. home in Wimbledon was also recently sold. The property, a luxury ground-up development, showcases exceptional design and quality throughout and is surrounded by a beautiful walled garden. Again, both of these sales were also agreed above their ‘Red Book’ valuations.
In these economically volatile times, there is still a thriving market for prime UK property, but buyers are more discerning than ever. The very best, high-specification properties are attracting premium prices, while those which fall just below that standard are proving harder to sell.
Location is key too. For instance, Notting Hill and Marylebone have shown strong price growth since 2020, despite a general slowdown in PCL during that time.[1] Evidently, specific prime pockets continue to thrive, despite wider market uncertainty.
As a specialist lender founded by prime property developers, CapitalRise benefits from deep sector expertise and a strong understanding of which projects are likely to perform well. This perspective helps us focus on schemes with inherent resilience, clear buyer appeal, and strong end valuations in the most desirable postcodes.
CapitalRise’s confidence in the high-end real estate sector is underpinned by almost a decade in the development finance market. To date, the firm has lent close to £600 million against more than £1.2 billion worth of property, and has repaid over £320 million to investors in capital and returns. This track record, across multiple market cycles, reflects a disciplined approach to underwriting and a consistent focus on asset quality.
Taken together, these trends send a clear message. While the broader market picture may be mixed, for assets that are genuinely best in class, demand is strong, and the most outstanding homes continue to sell at or ahead of expectations. With our rigorous due diligence, strong credit processes, robust and diverse funding lines, specialist alternative lenders such as CapitalRise can continue to support high-quality borrowers in bringing exceptional projects to life.
[1] PrimeResi Journal, ‘Anatomy of a market: Prime Central London explained in 10 charts’, 23 Feb 2026: states “Marylebone and Notting Hill have seen the strongest price growth over the past decade”
