Top London Spots for First-Time Buyers in 2025
October 6, 2025
What That Means for Tenants
In a surprising turn amid cost-of-living pressures and evolving housing dynamics, rental rates in some parts of London are showing signs of easing. This shift could offer relief to tenants squeezed by soaring costs. In this article, we explore what’s behind this trend, where it is most noticeable, and what renters and landlords might expect going forward.
According to Bloomberg, average rents in London recently dropped by about 0.1 %, bringing the typical rent down to around £2,250/month.
The rental market is “starting to normalise”, with supply and demand coming into better balance, notes Zoopla’s Rental Market Report.
In prime London, letting agents have reported an 18.3 % increase year-on-year in available rental stock, according to Letting Agent Today.
However, across the capital, rental growth between April 2024 and April 2025 still registered a modest +1.5 %, says the Evening Standard, suggesting that while growth is slowing, rents haven’t sharply fallen everywhere.
Weaker Tenant Demand
Fewer people are actively searching for rentals, partly due to immigration shifts and better mortgage availability for first-time buyers, reports Zoopla.
Rising Supply
More rental stock is available. Many landlords are choosing to rent instead of sell, particularly in commuter zones (Zoopla).
Affordability Pressures
Rents in many areas have risen faster than wages, making further increases unsustainable. The Guardian notes that landlords are moderating rent hikes to avoid vacancies.
Post-Pandemic Correction
The rapid increases during and after the pandemic overshot sustainable levels. The market is now rebalancing.
Local Differences
The decline is uneven: some boroughs remain stable while others — like parts of outer London — are seeing rent reductions (Evening Standard).
Outer London / commuter zones are showing stagnation or small declines.
Greenwich, for example, recently recorded a negative change in rental growth (Evening Standard).
In prime London, stock levels are higher (Letting Agent Today), which reduces competition for tenants.
For Renters
More bargaining power to negotiate rent or request incentives.
Better choice due to increased supply.
Renewal or lease expiry is a good time to renegotiate.
For Landlords
Potentially reduced yields and longer void periods.
Need to offer flexible terms or property upgrades to stay competitive.
Some may consider selling instead of renting.
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London’s rental market is clearly shifting, with signs of price moderation across several boroughs. For tenants, this could be the right time to negotiate better terms or explore new neighbourhoods. For landlords, adapting strategies now will help minimise void periods and protect rental yields.
If you are considering your options, our team at Primeland Property is here to help. Whether you want to rent a property in London, let your property with professional management, or simply stay informed about the latest London housing market trends, we provide tailored advice and hands-on support.
Get in touch today on 0207 377 5445 or visit us at 124 Whitechapel Road, London, E1 1JE to discuss your next move.
