London Housing Listings Plunge Amid UK Market Slowdown
The UK housing market is witnessing a noticeable decrease in the number of properties available for sale and rent
Estate agents and property portals have observed that new listings are becoming increasingly rare, marking a sharp contrast to a year ago when activity was relatively lively. According to the Royal Institution of Chartered Surveyors (RICS), a net 15% of surveyors reported fewer homes being listed for sale in September the fastest decline in almost two years. Many London streets now display fewer “For Sale” signs, and property websites show a noticeable decline in new rental advertisements. The slowdown is clear, reflecting a widespread loss of momentum in the market.
On the sales front, fewer homeowners are choosing to sell. Many potential sellers prefer to wait rather than enter a cooling market. RICS data also show that new vendor instructions have fallen for two consecutive months, suggesting a sustained hesitation among homeowners. Buyer demand has also weakened inquiry levels have remained negative for several months, suggesting that prospective buyers are hesitant. Even well-located homes are taking longer to sell, and viewings have slowed. The overall picture is one of caution, with transactions decelerating and confidence subdued.
A similar trend is emerging in the rental sector. Across the UK and especially in London, rental supply is tightening as more landlords withdraw from the market. Landlord instructions the number of new rental listings have dropped to their lowest level since early 2020, with a net balance of -37%. As a result, tenants are facing fewer choices and tougher competition for available properties. Many renters who might have moved are now choosing to stay put to avoid higher rents and relocation costs.
Landlord sentiment has shifted significantly over the past year
Rising expenses, higher borrowing costs, and impending regulatory changes have prompted some property owners to reconsider their involvement in the market. One in four landlords has indicated plans to sell part or all of their rental portfolios if “no-fault” evictions are abolished, reflecting growing apprehension about the upcoming Renters’ Reform Bill. The anticipated Bill, which aims to strengthen tenant rights by abolishing “no-fault” evictions, has raised concerns among landlords about their future responsibilities. Combined with tax changes and compliance pressures, these developments have led some landlords to sell their portfolios or step back from the market entirely.
Those who remain active are adopting a more strategic approach, focusing on stability and efficient management. Only landlords who can adapt to the new environment are choosing to maintain or expand their holdings.
Tenants are also cautious
Following several years of sharp rent increases, many are renewing their current agreements or negotiating directly with landlords rather than entering the open market. RICS anticipates that rents will rise by around 3% in the next year, driven by persistent supply shortages. Those who might have become first-time buyers are often extending their rental terms, waiting for a drop in prices or a cut in interest rates before making long-term commitments.
This mutual hesitation between landlords and tenants has slowed overall market activity
The housing need remains, but decisions are being delayed as both sides await greater certainty. Investors and property professionals are also adopting a measured stance. The appeal of residential real estate has weakened as elevated interest rates make mortgages and refinancing more expensive, squeezing returns and limiting new acquisitions. Mortgage rates, though off their peak, remain significantly above the historically low levels seen in the late 2010s, keeping affordability strained.
Adding to this caution is ongoing fiscal uncertainty. Analysts note that many investors are delaying decisions until the government’s next Budget clarifies potential tax reforms and property-related measures. Speculation around possible changes to property taxation has reinforced a widespread “wait-and-see” attitude. As a result, both individual landlords and institutional investors are postponing expansion plans until the policy direction becomes clearer.
All these factors reinforce the same trend: a reduction in listings and subdued activity across the sector
London, often seen as the barometer of the UK housing market, illustrates this slowdown most clearly. Agents report fewer new instructions, reduced buyer inquiries, and lower transaction volumes compared with previous years. Confidence has weakened across the board as economic concerns, financing costs, and regulatory uncertainty continue to weigh on sentiment.
At present, the market appears to be in a holding pattern. The decline in both sales and rental listings reflects a collective pause among buyers, sellers, and landlords. If interest rates stabilise or the government provides clearer guidance on housing policy, momentum could return. Likewise, once the final details of the Renters’ Reform Bill are confirmed, landlords and tenants will be able to adapt with greater confidence.
Until then, the drop in listings remains the clearest sign of a market in transition. For London, where price movements and rental trends often set the tone for the rest of the UK, the coming months will be critical. Despite the current lull, property remains a core asset, and today’s slowdown may ultimately lay the groundwork for a more balanced, resilient market once the uncertainty begins to fade.
