The capital’s property market has reached the bottom of its current cycle, according to new analysis from London estate agency Chestertons, which says the foundations are now in place for a gradual recovery after several turbulent years.
Despite headline-making challenges ranging from Brexit to the pandemic, political volatility and rising interest rates, average property prices across London are now broadly unchanged compared with a year ago. While some Prime Central London (PCL) postcodes have seen modest price declines, Chestertons says stability across most areas is a sign of resilience, not fragility.
“This is not a sign of weakness but of resilience,” said Matthew Thompson, the agency’s Head of Sales. “Although some high-value areas have softened, the majority of London postcodes have held firm. What we are seeing is not a collapse in demand but potential buyers delaying decisions until after the Government’s Autumn Budget brings clarity.”
Chestertons’ latest market indicators point to a pattern typically seen at the bottom of a property cycle. Buyer enquiries, viewings and offers have slowed, even as the number of available listings has risen. The agency argues that this pause does not reflect a falling market, but a temporary stall caused by economic uncertainty — historically a precursor to a sharp resurgence in activity once confidence returns.
“In previous cycles, periods like this have been followed by meaningful increases in activity,” Thompson added. “The current environment is creating an opportunity for committed buyers. They have more choice, less competition and greater negotiating ability than at any point in recent years.”
Underlying market fundamentals, Chestertons says, remain exceptionally strong. London’s population continues to grow, international demand is rising once again and new housing supply remains far below long-term requirements. Combined with stabilising inflation and improved lending conditions, the agency believes the turning point is close.
“We believe the market has now found its floor and that 2025 will lay the foundations for a more active 2026,” Thompson said. “For buyers, this is one of the most attractive entry points London has offered in a decade. Those who recognise that London rarely stays quiet for long will be best positioned to benefit from the next cycle.”
