![\"London](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2025\/12\/signs-of-recovery-in-the-uk-property-market.webp\")
<\/p>\nThe UK property market softened in the second half of 2025, as a significant number of buyers were pending for greater clarity on potential tax reforms and Stamp Duty revisions. With the changes within these regulations now confirmed, interest from global investors is gaining momentum and supply is stabilising. Analysts are also expecting property prices to rise by around 3%-5% in 2026.<\/p>\n
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Zoopla\u2019s reports state that UK prices rose by 1.3% overall, whereas Northern regions grew by around 3% due to factors such as better affordability, lower taxes and supply limits. Meanwhile, London and southern regions saw slight price declines, mainly due to higher stock levels.<\/p>\n
The housing stock supply in London is currently 8% to 15% above last year. This figure has placed buyers in a stronger position and supported negotiations. However, London\u2019s overall position remains solid. <\/p>\n
Rightmove data indicates that the average capital price of \u00a3660,040 is around 83% higher than the national average of \u00a3364,833. Thanks to lower prices, the number of agreed sales has increased by 4% since late 2024.<\/p>\n
![\"Tax\"](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2025\/10\/Legal-tax.webp\")
<\/p>\n
Earlier rumours suggested that properties priced above \u00a3500,000 might be subject to a new tax. However, the Autumn Statement has now confirmed that only homes above \u00a32 million will be subject to the Mansion Tax from April 2028.<\/p>\n
These homes account for just 0.5% of UK property and annual charges for this bracket of homeowners come down to \u00a32,500 per year for homes between \u00a32 million and \u00a32.5 million, up to \u00a37,500 for homes priced over \u00a35 million.<\/p>\n
Property experts are expecting prices to rise gradually in 2026 as confidence returns. Affordability is also improving. The price-to-income ratio is set to reach 8.2 in 2026, down from 9.5 in 2022, marking four consecutive years of improvement.<\/p>\n
![\"Reading](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2025\/12\/reading-riverworks.webp\")
<\/p>\n
Benham and Reeves recently presented several Berkeley developments to investors in Mumbai and Delhi. These were hosted alongside our Managing Director, Anita Mehra. The development showcase included Reading Riverworks, Oval Village<\/a>, White City Living<\/a>, South Quay Plaza and The Green Quarter; all situated within well-established regeneration areas with strong connectivity.<\/p>\n Our Singapore office recently previewed Lombard Square in Plumstead<\/a>, offering rental yields of up to 6.2%, along with The Row<\/a> in Abu Dhabi\u2019s cultural Saadiyat Island. The Malaysia office took charge of the Verdean launch event, a luxurious development next to Acton Main Line Station (Elizabeth Line, Zone 3). Residents get convenient access to central London, Canary Wharf and Heathrow. With rental growth of 28% over the past three years, the development is expected to deliver returns of up to 5.5%.<\/p>\n Tax on rental income will rise from April 2027. The basic rate will be 22%, the higher rate 42% and the additional rate 47%. This equals about \u00a320 extra tax for every \u00a31,000 of rental income. <\/p>\n ONS data reveals that national private rents are increasing by 5%, now averaging \u00a31,360 per month. London rents touched 4.3% and remain on the higher end at \u00a32,265, 67% above the national average.<\/p>\n This is happening as the first stage of the Renters\u2019 Rights Act begins on May 1 2026. Along with the abolishment of Section 21 \u2018no-fault\u2019 evictions, new compliance standards will apply to landlords and letting agents. <\/p>\n We established our Singapore office in 1999 as a result of consistent demand from local investors and clients to step into the London property market. In fact, we were one of the first estate agents to set up a dedicated office in Singapore for local clients. Thanks to our multi-lingual team, we provide comprehensive service to Singapore-based investors<\/a> looking to purchase, sell or let London property<\/a>.<\/p>\n So, if you live in Singapore and are interested in stepping into the London property market, please get in touch<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" The UK property market softened in the second half of 2025, as a significant number of buyers were pending for greater clarity on potential tax reforms and Stamp Duty revisions. With the changes within these regulations now confirmed, interest from global investors is gaining momentum and supply is stabilising. Analysts are also expecting property prices … <\/p>\nSingapore showcases and Malaysia launches<\/h2>\n
![\"Lombard](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2025\/10\/lombard-square-singapore.webp\")
<\/p>\nRental income tax set to increase from April 2027<\/h2>\n
UK rental growth and new RRA guidelines<\/h2>\n
![\"Rental](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2025\/09\/rental-demand.webp\")
<\/p>\nBenham and Reeves supporting Singapore investors<\/h2>\n