A report released today from one of the region’s leading estate and lettings agencies, KFH, shows that London’s lettings market remains active, with a +7% year-on-year rental uplift in some areas. The current average rent in London remains steady at £2,345, still 2.2 times higher than the average outside London.
Demand in the capital city remains strong, especially for one- and two-bedroom flats, despite tenant caution as a result of cost-of-living concerns and uncertainty. Popular hotspots include Elephant and Castle and Stratford / E20, with high-rise developments performing well. The report shows that there has been a +19% uplift in the number of new instructions between July and September 2025 compared to the same period in 2024.
With the biggest shift in the private rental sector, the Renters’ Rights Act, now a reality, the industry held firm in the anticipation of its passing when it came to landlords retaining their properties. Whilst some predicted a mass-sell, statistics show a steadfast majority of professional landlords opting to hold onto properties, preparing for the change and optimising yields where possible.
In sales, the report reveals that quality is still king and that properties that are thoughtfully staged and priced accurately are attracting motivator buyers. Suburban areas such as Wimbledon and West Hampstead are proving more robust in comparison to Central London, with life events such as new jobs and family changes continuing to drive transactions in the suburbs.
Buyer behaviour is also continuing to evolve as search radii are widening, with data showing that buyers are following stock rather than fixating on postcodes.
Esmee Jones, Managing Director – Lettings, KFH, said: “In a market shaped by speculation, clarity is the new currency. The private rented sector has witnessed the most significant legislative shift in history, so it is promising to see resilience and growth within the landscape of the London lettings market.
“Continuing to play a huge role in the property sector, London’s lettings market over the past three months has continued to attract younger and older demographics, students and families alike. As we approach the final few months of the year and look towards 2026, we are optimistic are prepared to welcome the changes and support our clients through the Renters’ Rights Act.”