London's rental market in 2026: what's actually happening to rents

The London rental market is calmer than the headlines suggest

If you have only read the headlines, you might think London rents are still running away. The current data tells a more measured story. Rents are still rising, but slowly, and much of the tightness that defined 2022 and 2023 has eased. Here is what the numbers actually show and what they mean if you are searching now.

The current numbers

The average rent for a new UK let is 1,321 pounds a month as of June 2026, according to Zoopla, up 2.1 percent on the same time last year. London’s average sits much higher at 2,273 pounds a month according to ONS data from earlier in the year, but the pace of London rent growth is now among the lowest of any UK region.

London growth is unusually mild right now

According to ONS and Zoopla figures, London rental inflation is running at around 1.7 to 2.2 percent annually. Compared with the double-digit growth seen at the peak of 2022 to 2023, this is a very different market. For anyone who paused a move because prices felt out of control, that pressure has largely eased.

More stock, more choice

Rental supply across the UK is still below pre-pandemic levels, but London specifically has been improving. There are more homes on the market at any given time than there were twelve months ago. In practical terms, that means renters can compare a shortlist rather than commit to the first flat they view. Well-priced homes still let quickly, but the era of viewing at nine in the morning and offering by lunchtime is no longer universal.

A little more time to decide

Average time-to-let in London is now hovering around twenty to thirty days, depending on the postcode and the property. That is longer than the frantic turnover of the recent past. For tenants, it means you can take a viewing, sleep on it, and often still find the flat available. For landlords, it is a reminder that pricing well and presenting the property well both matter more than they did at peak demand.

London is still London

None of this means London is cheap. The average rent is still the highest in the UK by a comfortable margin, and prime postcodes remain competitive. What has changed is the shape of the market. There is less bidding, less panic, and more room for informed decisions on both sides.

A practical read

If you have been waiting for a better moment to move, this is a calmer market than the one your friends may have described from 2022. If you are letting a property, honest pricing and a well-presented home are the two things that matter most. Talk to a good local agent about what your specific street is doing rather than the aggregate. That is the only useful number.

Written by the Vale and Mercer team · July 2026