Signs of renewed buyer confidence are emerging across London's property market, according to the latest research from Chestertons, with both buyer enquiries and registrations increasing year-on-year in October for the first time in over a year.
Enquiries through Chestertons' sales portal rose by 2.8% compared with October 2025, while new buyer registrations increased by 6%, suggesting that more prospective buyers are actively considering a move following an extended period of uncertainty.
The figures come after the Government's 28 October Budget has provided greater clarity for buyers and sellers, with Government borrowing costs easing and several mortgage lenders reducing their fixed rates. However, the Bank of England's recent decision to raise interest rates highlights the continuing challenges facing the housing market.
Adam Jennings, Head of Residential at Chestertons, said: "Despite uncertainty ahead of the Budget, we saw encouraging signs of renewed buyer confidence in October, with both enquiries and registrations increasing year-on-year for the first time in over a year.
"Since the summer, we've also seen more sellers who had previously put their plans on hold deciding to move forward, bringing additional properties to the market.
"Although buyers remain price-conscious, the increase in activity on both sides of the market is encouraging. With much of the uncertainty surrounding the Budget now behind us, we expect confidence to continue improving in the months ahead."
The Government's October Budget delivered several reassuring signals for the housing market, particularly following months of uncertainty about potential changes to property taxation.
Unlike the period leading up to Rachel Reeves' November 2025 Budget, when speculation surrounding new property taxes weighed on market confidence, the latest announcement was preceded by relatively few leaks.
Importantly for London homeowners, the threshold for the so-called 'mansion tax' remained at £2 million, despite suggestions it could be reduced to £1.5 million. This provided welcome clarity for owners and prospective buyers of higher-value properties across the capital.
Perhaps the most significant development for the wider mortgage market, however, has been the reduction in Government borrowing costs.
Ten-year gilt yields, an important benchmark for fixed-rate mortgage pricing, fell from 5.32% immediately before the Budget speech to approximately 5.17% in the period that followed. Market expectations of greater geopolitical stability following the US midterm elections have also contributed to the downward movement.
Several lenders, including Nationwide Building Society, Virgin Money and Lloyds Bank, have subsequently reduced fixed mortgage rates, according to Moneyfacts, although ongoing conflict in the Middle East continues to create uncertainty.
For London buyers, more competitive mortgage pricing could help improve affordability and encourage those who have delayed their plans to reconsider their options.
The Government has also provided further details of its Your First Home scheme, designed to help first-time buyers purchase newly built properties with smaller deposits.
First announced by Prime Minister Andy Burnham in September, the scheme will allow eligible buyers to purchase a new home with a deposit of just 2.5%, supported by a Government equity loan of 20% that will be interest-free for the first five years.
The initiative succeeds the previous Help to Buy scheme, which required a minimum deposit of 5%.
The Government estimates that Your First Home could support the construction of 70,000 homes nationally, with regional property price caps intended to reflect differences in local housing markets. In London, these caps will be set at £500,000 for Outer London and £650,000 for Inner London.
However, the availability of suitable new homes within these thresholds could limit the scheme's reach.
Research by Zoopla suggests that while approximately 90% of newly built one-bedroom flats currently on the market in London fall within the price caps, this drops to just 32% of two-bedroom flats, with almost no three-bedroom houses qualifying.
Although it is too early to describe the latest figures as a sustained recovery, the increase in buyer activity is an encouraging development following a prolonged period of uncertainty.
Greater clarity following the Budget, some easing in fixed mortgage rates and additional support for first-time buyers could all contribute to a more active sales market in the months ahead.