The London property market is stabilising after a period of volatility, but that sense of calm should not be mistaken for certainty. This is not a return to the conditions investors grew accustomed to in the previous decade. Economic growth remains modest, public finances continue to constrain fiscal policy, and the regulatory framework governing property investment - particularly in the private rented sector - is becoming more demanding. These factors are influencing how investors assess risk and return. 

Buy-to-Let - A sector under sustained pressure 
The buy-to-let market continues to operate under significant pressure, and lower interest rates have done little to alter the outlook. While lower borrowing costs offer some relief, they do not offset the pressures weighing on landlords. Profitability is being squeezed, not by a single policy change, but by the combined impact of taxes, tighter regulation, and rising compliance requirements. 

Capital gains tax remains a key consideration, influencing portfolio restructuring and exit strategies. For many landlords, the question is no longer whether to reduce exposure, but how and when. 

Stamp duty continues to affect transactional activity, discouraging expansion and re-entry, particularly in higher-value markets where acquisition costs are already substantial. The additional council tax surcharge on properties valued at £2m and above adds another layer of cost, particularly in London, where that threshold often captures standard family housing, rather than prime assets. Collectively, these measures raise the cost of entry and ownership, reinforcing a cautious approach to capital deployment.