Rental demand in London rose above last year’s levels during September, bucking a wider decline across Great Britain, according to Rightmove.
Enquiries from prospective tenants in the capital are 7% higher than in September 2025, while demand nationally is down 2%.
Rightmove’s Daily Demand Tracker shows London demand moved above its 2025 level on 7 September and has remained ahead since.
The turnaround follows a weaker start to the year, when rental demand in the capital averaged 7% below 2025 levels through to the end of August.
SMALLER HOMES LEAD RECOVERY
Demand for studios and one-bedroom homes in London has increased by 10% year-on-year, compared with growth of 4% nationally.
Demand for two-bedroom properties is up 6% in the capital, while enquiries for three-bedroom homes have risen by 2.5%. Nationally, demand for these property types is down 4% and 6% respectively.
The North East is the only other region recording annual growth, with demand up 1%.
London’s recovery comes despite the number of available rental properties in the capital falling by 10% year-on-year. Across Great Britain, supply is 0.4% higher.
RENTS CONTINUE TO RISE
The average advertised London rent now stands at £2,763 per month, up 3.1% annually, compared with a national average of £1,578, up 2.4%.
Studios and one-bedroom properties in London command an average of £1,904 per month, against £1,150 nationally.
Colleen Babcock (main picture, inset right), Property Expert at Rightmove, says affordability pressures may be keeping prospective first-time buyers in rented homes for longer.
“Mortgage rates remain relatively high and close to some of the highest levels seen in recent years, while the gap between house prices and earnings in London continues to make home ownership a challenge for many aspiring buyers,” she says.
And Ouali Chriqy (main picture, inset left), Estate Agent at eXp UK, adds: “These homes are particularly attractive to younger renters, single households and people moving to London for education or work, providing the flexibility they need without the long-term commitment of buying.
“At the same time, high house prices and affordability constraints mean that, for many people, renting is not simply a preference but the more viable option.”
