Eight in 10 UK financial services leaders are confident that a recovery in London’s IPO market in 2026 will be sustained beyond the short term, but warn that global volatility could derail progress, according to KPMG’s latest UK Financial Services Sentiment Survey.
The survey of more than 150 FS senior leaders, run between 23rd Feb and 4th March 2026, suggests that while sentiment towards London’s IPO market is improving, there is a clear set of risks that could undermine momentum. Global economic or geopolitical volatility (23%), more flexible or globally connected listing structures offered by rival exchanges (e.g. dual listings) (17%), and valuation gaps between London and other major listing venues (14%) ranked as the top three threats to a recovery.
IPO pipelines and regulatory reforms underpin sector confidence
Sector optimism about London’s listing performance this year is buoyed by IPO pipelines and regulatory reform. Almost seven in 10 sector leaders say that UK-based or headquartered businesses are either actively prioritising or often considering London as a listing venue, followed by 62% who say the same for international businesses. Over half (57%) say investors allocating capital to IPOs are actively prioritising or often considering London as a place to invest.
When it comes to the impact of regulatory reform, more than two thirds (69%) of leaders believe the UK is moving quickly enough on financial services reform to influence listing decisions that are being made today, and more than seven in 10 (72%) think the government’s three-year stamp duty exemption for new IPOs will make an impact on London’s success as a global listing centre.
Competitive challenges for future IPO performance
In addition to threats that could derail a market recovery, FS leaders also highlight specific areas that currently pose a challenge to London’s competitiveness as a listing destination. A third called out the UK’s tax environment as a key reason why London is overlooked when boards are choosing between major listing venues, followed by the UK’s listing complexity and cost (29%), levels of engagement from UK institutional and pension fund investors and economic or political stability relative to other markets (27% respectively).
“What these findings really highlight is how finely balanced the outlook for London’s IPO market is. There is a clear confidence across the sector that activity can recover and be sustained, but any recovery will be unfolding against a backdrop of ongoing global volatility. Geopolitical tensions and shifting economic conditions are shaping capital markets everywhere and companies today have more choice than ever about where to list, making the competitive environment more intense,” commented Svetlana Marriot, Head of Capital Markets Advisory at KPMG UK. “The good news is that recent reforms are starting to strengthen confidence in London as a listing venue but sustaining that momentum depends on a more stable geopolitical environment and ensuring the market remains attractive to both domestic and international issuers.”
Stronger post-IPO performance, more international listings and an improved global perception of London are highlighted as the top areas that will define IPO market success this year. Sustained increase in IPO volumes was ranked by the fewest leaders as what will define success this year.
Concerns loom about London’s IPO market reputation, and leaders warn that the City is being judged too narrowly
While nearly two‑thirds of leaders are concerned about the international reputation of London’s IPO market, most believe the City’s prospects are being misrepresented by an excessive focus on listings activity. More than six in 10 leaders agree there is too much emphasis on the performance of the London Stock Market, rather than London’s wider role as a financial centre. A majority also believe the narrative that “the City is dying and needs reviving” is overplayed.
London’s strengths extend well beyond listings and its global standing remains strong
When asked where London outperforms other global financial hubs such as New York and Singapore, leaders call out a range of strengths that sit outside traditional equity markets. The City’s innovative ecosystem, including AI and fintech, was ranked by most as London’s most competitive asset, followed by a strong regulatory environment and its global reach of activity.
Despite unease around IPO market perceptions, financial services leaders remain confident in London’s position as a global financial centre. Nearly three‑quarters (72%) of leaders rank London as the leading financial hub in Europe, placing it well ahead of Frankfurt, Paris and Luxembourg (5% respectively). Confidence in London’s longer‑term role also remains robust, with almost eight in 10 leaders confident the City can maintain its position as a global financial centre over the next three years.
Karim Haji, Global and UK Head of Financial Services at KPMG, added: “Global financial centres are often benchmarked on the success of their equity markets, but London offers so much more, it is a capital markets powerhouse and the insurance capital of the world.
“The UK’s innovative ecosystem is home to Europe’s leading fintech market and fosters an environment where regulators, policy makers and industry can work hand-in-glove to make changes that are meaningful, long-term and safe. Our research shows that the City is positive about the pace of regulatory reform and the benefits of a stamp duty holiday. The Mansion House Accord will also further strengthen the UK market, the fact that our pension funds are committed to investing onshore is a signal to the world that the UK is a strong place to raise capital.
“At the time our survey was in field a new global conflict broke out. Geopolitics is threatening the path towards economic stability everywhere, but in its very long history, the City has withstood many such shocks. Now is the time to showcase the resilience of this market to the world.”
