London has long been known for its fast-moving rental market. Yet as 2026 begins, many landlords are noticing something unusual: properties taking longer to let, even in traditionally high-demand areas.
This is not a sign of a weak market, but of a market that is adjusting.
Rent growth has slowed, not collapsed
London rents remain at historically high levels. However, recent data shows that rent growth has cooled significantly compared with previous years. According to Rightmove’s latest Rental Price Tracker, average advertised rents in London rose by around 1.6% year on year at the end of 2025. This marks a clear slowdown from the rapid post pandemic increases.
"Rents are still high, but tenants are no longer absorbing price increases as easily as before."
As affordability tightens, even small gaps between asking rent and perceived market value can result in properties sitting on the market for longer.
Affordability is shaping tenant behaviour
Tenant affordability has become one of the strongest forces influencing the rental market in 2026. Rents now take up a larger share of household income, particularly in London. This has changed how tenants behave:
- Fewer discretionary moves
- Longer tenancy renewals
- Greater sensitivity to pricing and value
While demand has not disappeared, lower turnover means fewer new lets happening at any one time, which can give the impression of higher availability.
Supply remains tight, but landlord behaviour has changed
Despite perceptions of oversupply, the overall number of homes available to rent in London remains constrained. Recent research shows the private rented sector has shrunk compared with pre-pandemic levels, as some landlords exit the market or reduce portfolio size. Government data also indicates that a growing proportion of landlords are considering selling rather than expanding.
"Some properties are listed, but not actively progressed, as landlords reassess strategy rather than rush to let."
This contributes to longer visible listing periods without indicating a collapse in demand.
Vacancy is not always a warning sign
It is important to separate genuine market issues from normal rental cycles. A degree of vacancy is expected in any healthy rental market. Properties may be temporarily unoccupied due to:
- Refurbishment or upgrades
- Compliance or EPC improvements
- Natural gaps between tenancies
National housing data shows long-term empty homes represent only a small proportion of the total housing stock.
Not every vacant property is a cause for concern.
Pricing and presentation matter more than ever
In a more balanced market, tenants have greater choice and are quicker to compare value. Properties that continue to let efficiently tend to share common characteristics:
- Market-aligned pricing
- Accurate and clear marketing
- Professional photography and presentation
- Realistic positioning against local comparables
"In 2026, speed to let is less about demand alone and more about alignment with market reality."
Properties priced on outdated expectations are far more likely to stagnate.
London’s rental market is not stalling. It is recalibrating.
Rents remain high, demand is still present and supply is still constrained. However, affordability pressures, slower rent growth and more cautious tenant behaviour mean landlords must be more deliberate in how properties are positioned.
Understanding these dynamics is now essential to avoiding unnecessary void periods and ensuring a smoother letting process.
WeChat
