London markets are poised to turn a corner in 2026. Here’s how to prepare
There is a clear and renewed appetite for the UK market, particularly from overseas investors. Here’s what will come next and what London needs to do to benefit, says Ross Mitchinson
I’m more optimistic than ever about London’s prospects as a dominant investment destination for the year ahead.
At a recent landmark dbAccess UKI Conference 2026, Deutsche Numis brought together several hundred global investors with leading UK listed corporates. On the second day there was a very interesting and informative Q&A session with Dame Julia Hoggett, CEO of the London Stock Exchange. She articulated the great progress that has been made around areas such as listing reforms, but also said that the entire ecosystem needs to continue working together, across private and public markets, to provide access to the vital capital companies need at every stage of their development. She was clear that there is no shortage of money in the UK, but there needs to be greater focus on making sure that capital flows into productive assets, including UK listed companies. If there was to be a reverse of the outflows from UK equities by domestic pension funds, this would be exceptionally positive for markets and also for the ability to raise fresh equity on the London markets.
Our conference conversations show that, following several years of cautiousness, UK boardrooms are starting to look at growth again. This represents a notable shift from previous discussions, which were often focused on how to reallocate capital to shareholders – now they are considering targeted M&A and how this could complement their long-term growth strategies.
Despite heightened geopolitical uncertainty – including renewed trade tensions and tariff risks – investor sentiment at our conference was overwhelmingly positive. What stood out this year was a clear and renewed appetite for the UK market, particularly from overseas investors, who talked about the opportunity created by the disparity between the underlying quality of UK assets and their relatively discounted share prices.
This shift is significant because it demonstrates that investors are looking beyond the media narrative and focusing on what really matters: attractive valuations, a strong financial ecosystem, and a talent base that remains the envy of the world. The marked and sustained level of take-private activity over the past year further demonstrates the UK’s relatively low valuations – but the key challenge in 2026 will be to ensure London’s public markets allow companies to thrive, rather than merely serving as a hunting ground for buyers.
Pull factors
The fundamental pull factors that differentiate London from other capital markets remain. Just a few weeks before our UKI Conference, London was named the most powerful city in the world in the Global Power City Index – highlighting its special strengths in cultural interaction and accessibility. Once again, global economic advisory firm Oxford Economics ranked London as the world’s top city for human capital, thanks to its strong pipeline of skilled graduates, global talent and world-class universities.
The City has long benefited from a progressive and robust regulatory environment, with recent changes to the UK Listing Rules providing greater flexibility for listed companies. London remains, by some margin, the largest capital market in Europe and one of the most influential in the world.
London continues to outperform on the fundamentals that global investors care about
London continues to outperform on the fundamentals that global investors care about. Nonetheless, with global geopolitical activity looking to remain volatile in the coming months, London must keep building on its strong foundations by challenging the negative narrative to ensure it continues to remain appealing for both corporates and investors.
After discussing these themes over a packed two-day schedule of conversations with CEOs and global investors, here’s what I think will come next and how London needs to prepare:
Move from defence to ambition. I believe London will see a rebound in IPO activity in 2026. However, the markets will likely need to navigate persistent geopolitical uncertainty and global market volatility, which will require companies to be agile and proactive to take advantage of new opportunities.
A venue to grow, not to exit. The City needs to be a hub for growth – including targeted M&A. We are now seeing a positive shift in boardroom focus, as more corporates, along with global investors, view London as a platform for expansion, not just for convenient exits.
Protect the City’s deep talent base. London’s strength is underpinned by the depth of its talent base and world-class educational institutions – we should prioritise the right training and enhanced ease of movement for STEM-skilled workers.
Challenge negative narratives with decisive action. Focus on actively demonstrating London’s strengths, such as the latest positive regulatory developments, talent pool and any uplift in IPO activity, to counter the negative narrative and continually broaden the City’s appeal to both domestic and overseas investors.
If we can align the UK capital markets narrative with the conversations industry stakeholders are having on the ground, London will be better placed to leverage its fundamental strengths and fortify its position as a global financial powerhouse into the future.
Ross Mitchinson is CEO of Deutsche Numis