Prime London rents have risen by 1.2 per cent over the last month as supply decreased and uncertainty around the Middle East conflict persisted, analysis from Knight Frank has revealed.
The analysis of data from Rightmove showed the number of new rental listings in Q1 2026 in prime central and prime outer London was 8 per cent lower than the same period in 2025.
Meanwhile, the number of new prospective tenants has increased by 7 per cent over the same period.
Knight Frank said supply has also fallen in recent years as it has become “less attractive” to be a landlord.
Reported mortgage defaults surge in Q1 as Middle East conflict continues
It said the Renters’ Rights Act, due to be introduced next month, will add uncertainty around rent increases, repossession rules, and selling properties.
“Putting the decline into context, the number of Rightmove listings in Q1 was 15 per cent below the five-year average. The number of new prospective tenants was flat over the same period,” said Knight Frank.
As a result of this growing imbalance, average rents have been pushed higher, with rental values in prime central rising by 1.2 per cent in the 12 months to March.
This took the total increase over the last decade to 29 per cent.
Similarly, in prime outer London, which includes Hampstead, Chiswick and Canary Wharf, the annual increase reached 2.8 per cent, producing a rise of 24 per cent since 2016.
Middle East conflict
The analysis also attributed the increase in rents to the ongoing military situation in the Middle East, pointing out that it has led to an rise in demand.
The number of new prospective tenants in March 2026 was 16.6 per cent higher than the same month in 2025.
For properties valued at more than £1,000 per week, this increase was 16.9 per cent.
Knight Frank said the increase in people looking to temporarily move to the UK from the Middle East has contributed to the rise in demand.
“We have seen an influx of enquiries from the Middle East for people looking at short-term rentals of six months or less,” Knight Frank’s head of prime central London lettings, David Mumby, said.
“They tend to be British, European or North American nationals with families who have moved to the Middle East recently, but who already have a network in London.”
The analysis, also found the rise was driven by an increase in mortgage rates last month as higher energy costs pushed up inflation expectations.
tom.dunstan@ft.com
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