London rents in autumn 2026: steadier, but not cheaper

For tenants, the last three years in London have felt relentless. Rents in the areas we cover rose by more than a quarter between 2022 and 2025. This year, finally, the pace has slowed. Across the 640 lets we agreed between September 2025 and August 2026, the average rent rose 2.1%, against 7.8% the year before.

That is not the same as rents falling. A two-bedroom flat in Islington that let for £2,950 a month three years ago now lets for around £3,600. But it does mean the bidding wars of 2023 have mostly gone.

Where demand is still strongest

The tightest part of the market remains the family house. Four-bedroom houses with gardens in Clapham and Hampstead still attract several applicants in the first week, and we agreed most of them at or above the asking rent. Supply is the issue: many landlords sold family houses when rates rose, and few have come back.

One-bedroom flats near a station are the other pressure point, particularly around Angel and Greenwich. Young professionals arriving in London for work tend to want the same thing in the same places.

Where tenants have more choice

Larger flats in new buildings have become noticeably easier to rent. In Greenwich, where several new buildings completed this year, some landlords have offered a month's rent free or included furniture to secure a tenant. Lateral flats above £5,000 a month in Notting Hill are also taking longer to let than they did.

What this means for landlords

Pricing matters again. Homes priced in line with recent lets in the building or street are still letting quickly. Homes priced 5% to 10% above are sitting, and the cost of a month empty is far higher than the difference in rent.

Condition matters too. Tenants who have a choice choose the home with the new carpet, the working shower and the fresh paint. We are advising most landlords to budget for a refresh between tenancies, and to look at their EPC rating ahead of the minimum standards expected later in the decade.

What this means for tenants

If you are looking now, you have a little more room to negotiate than a year ago, especially on longer tenancies. Landlords value certainty: offering a two-year tenancy with a break clause at twelve months is often worth more to them than an extra £50 a month.