London rents climbed 6.1% year on year in September to an average of £2,448, according to the latest data released by Hello Neighbour.
That makes five consecutive months of annual growth since the Renters' Rights Act came into force, although the rate has slowed from 9.8% in August. Rents remain almost 13% above where they stood between January and April.
The five readings since the Act took effect on 1 May run at 3.7%, 6.4%, 8.7%, 9.8% and 6.1%. Across July to September, advertised rents are up around 8% year on year.
Hello Neighbour believes falling supply explains why prices have held up. Zoopla's rental market report, published on 14 September, puts the number of homes available to rent in London 6% lower than a year ago, and 13% lower in inner London. Zoopla links this to higher mortgage rates keeping would-be first-time buyers in the rental market for longer.
It also argues that market forces are doing more than the Act, pointing to Scotland, which has run a similar system for some years. If Zoopla is right, and interest rates are expected to rise from here, Hello Neighbour expects the trend to continue.
The Act is still shaping how landlords set opening rents. Since 1 May, landlords cannot accept offers above the advertised asking price, and rent increases are limited to once a year, which has encouraged higher listings from the outset. Hello Neighbour said many of its conversations with landlords support this.
London rents: advertised versus achieved
The firm's figures cover properties currently on the market, so they reflect advertised rents rather than achieved ones. Across the London properties Hello Neighbour listed from July to September that have since let, the agreed rent came in 2.5% below the advertised figure.
Two other measures are published for London. HomeLet, which records rents agreed on tenancies that started in the month, has London up 3.3% for September, down from 5.1% in August. The ONS Price Index of Private Rents, which covers new and existing tenancies together, has London at 3.5% in the 12 months to August.
Set against HomeLet's 3.3%, Hello Neighbour's 6.1% points to a gap of around 3% between asking and achieved rents. The firm said that gap matters for any landlord thinking about a valuation or a rent review.
Affordability remains the binding constraint in London. Hello Neighbour expects achieved rents to keep growing more slowly than advertised rents for the rest of 2026, and it anticipates continued hard negotiation on initial rent levels.
Demand has shown no significant change. Hello Neighbour recorded 34 enquiries per property in September, down from 40 in August and below the 45 it saw in September 2025, 61 in September 2024 and 65 in September 2023.
Enquiries have been steady across the year, averaging 33 from January to May and 38 from June to September, but every month has come in lower than the same month last year.
