London’s house price slump to bottom out, RICS survey says

[LONDON] For the first time in more than a year, property agents expect house prices to rise in London, a survey revealed on Thursday (Feb 12).

The Royal Institution of Chartered Surveyors (RICS) said that price expectations narrowly edged up in the capital at the start of the year, having fallen during every month in 2025.

The monthly survey is closely watched for indications of where the UK property market might be heading. While it measures the views of its members, other surveys have pointed to an extensive downturn in London’s house prices, the Office for National Statistics recording the longest losing run since the financial crisis.

Chancellor of the Exchequer Rachel Reeves sent a chill through the property market in the run-up to her Nov 26 Budget, with expectations of a new “mansion tax” on millions of homes. In the end, Reeves imposed a levy on houses worth over £2 million (S$3.4 million) – a charge that will particularly hit London, but is not as broad as had been feared.

Some agents and surveyors told RICS that demand had become pent-up ahead of the Budget, and could be unleashed this year.

Across the UK as a whole, RICS said that new buyer enquiries improved in January, alongside agreed sales. Expectations of near-term sales fell, however, to a positive balance of 4 per cent, down from December’s surprisingly high reading of 22 per cent.

SEE ALSO

UK builders hopeful of turnaround as PMI shows slowdown easing

UK housing market is turning a corner after Budget, agents say

London now most likely place to see homes sell at a loss in UK: report

UK house prices in surprise drop at end of 2025

More

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

“There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued,” noted Simon Rubinsohn, RICS chief economist. BLOOMBERG