Rents across London reached a four-year high in September 2025, despite a seasonal drop in tenant demand. New market data points to an encouraging shift towards balance, with increased listings, stable pricing, and tenants benefiting from greater choice. As the sector looks ahead to the Renters’ Rights Bill in 2026, this period marks a key inflection point for both landlords and renters navigating a fast-evolving landscape.
- Average rents rose 3% in September 2025 compared to August
- Weekly rents reached nearly £600 - the highest September figure in four years
- Rental supply is up 11% year-to-date compared with 2024
- 63% of renters secured homes under budget; 30% stretched above
- Renters’ Rights Bill set to begin implementation in 2026
Original article source: Property118
September’s figures portray that the London rental market is holding firm – and beginning to rebalance in a way that benefits both sides of the tenancy equation.
While the seasonal drop in applicant numbers is expected at this point in the year, what stands out is the resilience of pricing. Rents grew. A 3% month-on-month rise, with values touching £600 per week, highlights how well the market continues to absorb stock without triggering price erosion.
Crucially, supply is improving the quality of tenant choice. With 11% more listings on the year and competition falling from 20 to 13 applicants per property, renters are no longer forced into bidding wars at the same scale. Yet the fact that 98% of registered budgets are still being spent – and that 30% of tenants went over budget – shows that demand remains financially committed.
This marks a pivot towards a healthier dynamic. Strong yields, better-aligned tenancies, and reduced volatility in applicant behaviour are all signs of a more sustainable rental environment.
Looking ahead, the Renters’ Rights Bill will be a defining shift. The anticipated 2026 reforms – including the end of Section 21 and a move to rolling tenancies – will reshape operational models across the capital. But if this September’s numbers tell us anything, it’s that the London market remains fundamentally resilient. The current data reflects a maturing ecosystem, not a softening one.
Now is the time to review portfolios with 2026 in mind – not out of concern, but with clarity. The window ahead presents opportunity, especially for those who view property not just as a yield vehicle, but as a long-term asset underpinned by real demand and regulatory evolution.
