London Renting Update, January 2026

A quick snapshot; rent growth is cooling, but London is still expensive

The latest Office for National Statistics (ONS) bulletin published 21 January 2026 shows average UK monthly private rents rose by 4.0% in the year to December 2025, down from 4.4% in the year to November 2025. ONS also notes this is the lowest annual rent inflation rate since May 2022.

That is the headline; rent growth is easing across the UK.

Now the London reality check; even if growth slows, London remains the priciest place to rent in the UK, and competition for well priced homes still bites in popular areas. Slower growth does not automatically mean “cheap”; it usually means “less frantic than last year”.

What this means for renters in London; pricing is normalising, so preparation wins

When rent inflation slows, the market becomes more rational. You tend to see:

More realistic asking rents
Landlords and agents still aim high, but overpriced listings sit longer. If a property has been live for a couple of weeks with repeated reductions, it is often a sign the initial price missed the mark.

More room to negotiate; but only when the evidence is on your side
Negotiation works best when you can point to comparable listings in the same area, with similar size and condition, that are priced lower. “It feels expensive” is not a negotiating position; evidence is.

A bigger gap between “good” and “average” homes
Well maintained properties with strong EPC ratings, decent storage, and sensible layouts still rent quickly. Compromised properties (awkward layouts, damp risk, poor light, tired finish) are where you can sometimes push for a better deal.

A reality check for East London; demand is strong, but speed matters less than you think

In areas around Whitechapel, Mile End, Bethnal Green, and the wider East London commuter belt, demand stays high because transport links and employment access are strong. The shift you may notice in early 2026 is not that demand disappears; it is that renters are becoming pickier.

So the winning approach is not panic; it is preparation:

• Get your paperwork ready before viewings; ID, proof of income, references, right to rent documents

• Decide your maximum monthly rent and stick to it; London overspend is a slow moving financial trap

• Move fast on the right property; but do not rush into obvious problems you will pay for later

The big change on the horizon; the Renters’ Rights Act starts 1 May 2026

The second reason this is a smart topic right now is that the rules of private renting in England are about to change in very practical ways.

Both Shelter and the National Residential Landlords Association (NRLA) state that changes begin from 1 May 2026.
The Government’s guide explains the Act’s direction of travel, including ending Section 21 “no fault” evictions and tightening the reasons a landlord can regain possession.

What renters should know before 1 May 2026

Here are the changes that are most likely to affect day to day renting decisions:

Section 21 is being removed
In simple terms; landlords will no longer be able to end a tenancy using a Section 21 notice. Possession will need to rely on specified grounds.

Fixed terms are moving towards periodic tenancies
The direction is towards tenancies that roll on, rather than a fixed end date. The practical effect; renters should expect different conversations about stability, notice, and long term planning.

Rent increases may face more scrutiny
From 1 May 2026, tenants can challenge rent increases at tribunal, and industry bodies have warned that timelines could become slower when challenged.

A “protected period” early in the tenancy
The Government guide describes a 12 month protected period at the start of a tenancy for certain grounds, and longer notice periods in some scenarios. This is designed to reduce instability for renters.

The grown up conclusion; renters will gain more protection against sudden loss of housing, but the market will also respond. Landlords will become more careful about applicant quality, documentation, affordability, and property condition. If your paperwork is weak, the new world will not magically become easier.

What landlords are likely to do next; expect more selectivity, and more emphasis on compliance

When regulation tightens, landlords typically respond in three ways:

Stronger screening upfront
Landlords will lean harder on affordability checks, guarantors where needed, and clear documentation. It is not personal; it is risk management.

More focus on property standards
If it becomes harder to regain possession, the incentive to rent only properties that are easy to maintain and legally compliant increases. Homes with poor EPC performance or ongoing repair issues become a headache.

More disciplined rent setting
As rent growth cools and challenges become easier, landlords have a greater incentive to price in line with the market, not above it.

Practical tips; how to rent well in 2026

For renters

• Use comparables; screenshot similar listings to support negotiation

• Ask the right questions at viewings; heating type, EPC rating, damp history, average bills, expected maintenance response times

• Do not rent on vibes; rent on facts, especially in London

For landlords

• Keep documents tidy; safety certificates, inventories, and maintenance records

• Price for speed; the best outcome is often a stable tenant quickly, not a higher rent after weeks of void

• Treat compliance as a strategy, not an admin chore

The Primeland view; what “cooling rent growth” really means in London

A cooling growth rate does not mean the London rental market is suddenly calm. It means the market is becoming more price sensitive. Homes that are priced correctly, presented well, and managed properly will still move fast. Overpriced homes will not.

If you are renting in East London, the best edge is simple; be prepared, be evidence led, and move decisively when the numbers stack up.

For current availability and local guidance, visit Primeland Property
Or contact us directly; 0207 377 5445; 124 Whitechapel Road, London, E1 1JE