London rental market insights (2026)

London is the most expensive rental market in the UK, and by a considerable distance. Average monthly rents for flats in Greater London are more than double the UK average, with houses commanding an even higher premium. The gap between inner London and outer London is significant – boroughs such as Kensington and Chelsea sit at the top of the range, while more affordable options in east London and outer boroughs attract tenants priced out of more central locations.

The long-term trajectory of London rents is one of sustained rental inflation. Rent per square foot has risen by more than 40% over the past several years – one of the strongest long-term growth rates among major UK cities. More recently, annual rental growth has moderated from the double-digit increases seen in 2022 and 2023, as affordability constraints have begun to limit how far rents can rise. According to the Office for National Statistics, annual rent increases in London have slowed to around 1–2%, below the UK average – a sign that the market is stabilising rather than retreating. Asking rents on new lets, tracked by various sources, tell a similar story: a market that remains expensive but is no longer accelerating at pace.

Source: Dataloft by PriceHubble / ONS private rental market statistics.