London’s rental market continues to outperform the rest of the UK, with average rents for newly agreed tenancies reaching £2,207 per month in July 2026.
According to the latest HomeLet Rental Index, average London rents increased by 1.2% between June and July and were 6% higher than in July 2025. By comparison, the average UK rent reached £1,369 per month, with annual growth of 4.3%.
These figures show that demand for rental property remains strong across the capital. However, landlords should not assume that every property can achieve the London-wide average. Location, condition, property size, tenant demand and local competition all influence the achievable rent.
Why Are London Rents Continuing to Rise?
Several factors continue to support rental growth across London.
Limited rental supply
The number of available rental properties remains restricted in many parts of the capital. Recent Rightmove figures reported by The Negotiator showed that rental supply had fallen below the previous year’s level, while London experienced the largest reduction in available rental stock.
The same research found that the average rental property was receiving approximately ten enquiries, compared with five enquiries before the pandemic. This indicates that competition remains considerable, even though it has reduced from the exceptionally high levels recorded in 2022.
Continued demand for well-located homes
London continues to attract professionals, students, families and international tenants who need access to employment centres, universities and public transport.
East London areas such as Whitechapel, Stepney Green, Mile End, Bethnal Green, Bow, Stratford and the Docklands remain particularly attractive because of their transport connections and access to central London.
Landlords can review current local asking prices by comparing similar homes on Primeland Property’s properties to rent in East London.
Higher landlord operating costs
Mortgage payments, maintenance, insurance, licensing requirements and taxation continue to affect landlord expenses. Some landlords are reviewing rents to ensure that their properties remain financially sustainable.
However, rent increases must be based on realistic market evidence. Setting the rent too high can result in longer void periods, fewer suitable applicants and reduced annual income.
What Does the 6% Increase Mean for East London Landlords?
The latest figures suggest that well-managed East London rental properties can still deliver strong demand and competitive rental returns.
However, £2,207 is a London-wide average for newly agreed tenancies. It combines different property types and locations, from individual flats and house shares to larger family homes.
A landlord with a room in a shared house in Stepney Green should not use the same pricing strategy as someone letting a two-bedroom flat in Canary Wharf. A professional rental valuation should consider:
- Recent rents achieved for comparable properties
- The property’s exact location and transport links
- Number and size of bedrooms
- Furnished or unfurnished condition
- Overall presentation and maintenance
- Energy efficiency and safety compliance
- Current tenant demand
- Local licensing requirements
Primeland Property’s landlord services in London can help landlords understand local rental values and select the right letting or management service.
Landlords Must Set the Asking Rent Correctly
Correct pricing has become even more important since the Renters’ Rights Act changes took effect on 1 May 2026.
Landlords and letting agents must now publish a specific asking rent when advertising a property. They cannot invite, encourage or accept offers above the advertised amount.
According to recent research reported by The Negotiator, some London landlords have responded by increasing their initial asking prices. However, tenants are also comparing more properties before submitting an application, which means excessive pricing could reduce serious interest.
The strongest strategy is not to advertise at the highest possible figure. It is to establish the highest realistic rent that can attract suitable tenants within a reasonable period.
Can Landlords Increase an Existing Tenant’s Rent?
The Renters’ Rights Act introduced a stricter process for rent increases.
Under the current rules, landlords must:
- Use the Section 13 process and the prescribed Form 4A
- Give the tenant at least two months’ notice
- Increase the rent no more than once per year
- Ensure the proposed increase does not exceed the open market rent
Tenants can challenge an increase through the First-tier Tribunal when they believe it exceeds the open market value. Full details are available in the official GOV.UK Renters’ Rights Act guidance for landlords.
Landlords should therefore retain evidence supporting the proposed rent, including comparable listings, recent local agreements and a professional market appraisal.
For more information about the legislation, read Primeland Property’s guide to the Renters’ Rights Act from 1 May 2026.
Property Condition Still Determines Tenant Demand
Rental growth does not mean tenants will accept poorly maintained or incorrectly priced homes.
Properties that are clean, well-presented and properly maintained are more likely to attract reliable applicants. Landlords should address repairs, safety checks and decorative issues before marketing begins.
Every landlord must also continue meeting core legal responsibilities, including:
- Gas and electrical safety
- Smoke and carbon monoxide alarms
- Energy Performance Certificate requirements
- Deposit protection
- Right to Rent checks
- Property licensing where applicable
- Keeping the property safe and free from serious hazards
The complete list of basic responsibilities is available through the government’s landlord responsibilities guidance.
Could Guaranteed Rent Provide More Stability?
Although market rents are rising, landlords still face risks from void periods, arrears, maintenance and regulatory mistakes.
Primeland Property’s Guaranteed Rent Scheme in London provides eligible landlords with an agreed monthly rental payment, including during periods when the property is unoccupied.
This may suit landlords who prefer predictable income and professional day-to-day management rather than managing tenant enquiries, compliance, inspections and maintenance themselves.
Should London Landlords Increase Their Rent Now?
Not automatically.
The 6% annual increase confirms that the London rental market remains strong, but rental decisions should be based on the individual property rather than a city-wide headline.
Landlords should consider a rent review when:
- The existing rent is clearly below the local market
- Comparable properties support an increase
- The property is in good condition
- The correct legal process can be followed
- The increase remains affordable and commercially sensible
A modest, well-supported increase may produce better long-term results than an aggressive increase that encourages a reliable tenant to leave.
Get an Accurate East London Rental Valuation
London rents may be increasing, but accurate pricing, compliance and professional management remain essential.
Primeland Property has been serving landlords and tenants from Whitechapel since 2005, providing lettings, property management and guaranteed rent services across East London.
For an accurate rental valuation or advice about managing your property under the latest rental rules, contact Primeland Property.
Prime Land Property
124 Whitechapel Road
London, E1 1JE
Telephone: 0207 377 5445
Email: info@primelandproperty.co.uk
