London House Prices Could Hit Market Bottom Soon
The UK housing market, and London in particular, continues to experience downward pressure on property prices, but recent survey data from the Royal Institution of Chartered Surveyors (RICS) point to signs of the price slump easing. While price balances remain negative, a growing share of surveyors now expect house prices to return to growth within the next twelve months.
Why Price Declines Are Slowing and What It Means
For an extended period, weak buyer demand, elevated mortgage rates and economic uncertainty contributed to a steady fall in UK house prices, especially in London and the South East. The latest RICS data show that UK house price balance remained at -14 % in December 2025, unchanged from November but improved compared with deeper negative readings earlier. Survey participants also reported a higher net expectation of price rises over the next year, offering a potential early signal of market stabilization.
Regional Differences in Housing Market Trends
The downward pressure on prices has been most pronounced in London and the South East, where price balances have remained well below the national average, reflecting sharper declines in those regions. Meanwhile, other parts of the UK such as Scotland and Northern Ireland have seen more resilient or even rising house prices. These regional variations underscore the diverse dynamics within the broader UK housing market.
Shifts in Expectations and Outlook for Recovery
Although overall price balances remain negative, sentiment among surveyors has become less pessimistic. A notable increase in the proportion of respondents anticipating price growth in the coming year accompanies the moderation in the pace of declines and suggests a potential turning point. Analysts emphasize that future progress will depend on mortgage rate trends, economic confidence and household finances.
Market Commentary from Agents and Surveyors
Estate agents and market participants report continued subdued buyer activity, yet the slowing pace of price declines and stabilization signals in recent data are fostering cautious optimism. Many industry professionals view these developments as a transition toward a calmer market phase, where prices may settle and begin to stabilize before any sustained recovery takes hold.
As reported by experts at International Investment, the current state of the UK housing market reflects a transitional phase in which prolonged downward pressure is giving way to signs of stabilization. However, sustainable recovery will hinge on strengthening demand, reduced economic uncertainty and more favorable borrowing conditions.