London Rentals Update, January 2026

Rents are rising more slowly, but the best homes still move quickly

The London rental market has started 2026 with a noticeable shift. Tenants have a little more choice, and landlords have to work harder to secure the right tenant at the right rent. However, demand has not disappeared, it has simply become more selective. As a result, correctly priced, well presented homes in strong locations still let quickly.

Below is the latest rental news, what it means for London, and how to act on it if you’re letting a property or searching for your next home.

What the latest data says

Zoopla’s Rental Market Report (December 2025) shows UK rental growth has slowed to 2.2%, while supply has improved and demand has dropped to a six year low.

This matters because the market no longer behaves like a queue outside a bakery. Instead, tenants compare options, negotiate more confidently, and prioritise overall value, not just the monthly rent.

Why rents are not surging like before

Two forces are pulling the market in opposite directions.

First, supply has improved. Zoopla highlights a narrowing gap between supply and demand through 2025, which has taken heat out of headline rent growth.

Second, landlord instructions remain under pressure. RICS surveys continue to show landlord supply trending downward, with net balances still strongly negative in late 2025. That keeps London structurally tight, even when short term demand softens.

So the story is not “renters are suddenly in charge”. The story is “the market has become more balanced, and quality now decides everything”.

What this means for London, especially flats

London is seeing extra scrutiny on flats, partly because running costs have become a bigger talking point. A separate London sales trend reinforces this point. Financial Times reporting, based on Hamptons analysis, shows 14.8% of London homes sold at a loss in 2025, and losses were concentrated in flats, with 22% selling for less than their previous purchase price.

Even though that data covers sales, not rentals, it shapes rental behaviour because tenants now ask more questions about buildings. They look closely at heating efficiency, service charge related issues, lift reliability, concierge costs, and overall condition. In buildings where costs feel unclear, tenants often hesitate, even when the location is excellent.

Practical advice for landlords in 2026

Price to the market, then protect your yield

As demand cools, the fastest route to a strong tenancy is accurate pricing from day one. Overpricing rarely “tests the market”, instead it increases void periods and triggers bigger reductions later.

Lead with value, not just a listing

Tenants now choose homes that feel easy to live in. That means clean presentation, responsive maintenance, clear bills information, and strong internet connectivity.

Prepare the paperwork early

If you manage a flat, tenants will ask questions about running costs and building management. Clear answers reduce delays and reduce drop offs.

Focus on tenant quality and stability

With growth moderating, the best landlords will prioritise longer tenancies, steady income, and fewer gaps, rather than chasing the highest headline rent.

Practical advice for tenants in London

Act quickly when the home is right

The “best” properties still go quickly, especially near transport links and employment hubs. More choice does not mean infinite time.

Compare total monthly cost, not just rent

Bills, council tax band, heating type, and building quality can swing your monthly spend more than a small difference in rent.

Negotiate smartly

When a property has been listed for longer, tenants often have room to negotiate, especially if move in dates are flexible. However, if the home is well priced and well presented, you should expect competition.

Local view from Primeland Property, Whitechapel and East London

In Whitechapel, E1, and across East London, demand stays strongest for homes that tick three boxes, location, condition, and realistic rent. We’re also seeing more tenant focus on commute times, building standards, and energy efficiency.

If you’re a landlord, we can advise on the right rent level, the best letting strategy, and how to position your property so it attracts the right tenant quickly. If you’re a tenant, we can help you shortlist smartly and move decisively when the right home appears.

Speak to Primeland Property

For lettings and rentals in London, contact Primeland Property on 0207 377 5445, visit 124 Whitechapel Road, London, E1 1JE, or explore our services at our website.