Rental prices in London continue their upward trend, with average monthly rents in April 2025 reaching £2,291 — a 10% increase compared to April 2024, according to the latest report from Hello Neighbour.
Despite a slight month-on-month dip of 1.8%, prices remain 4% higher than the preceding three-month average, reflecting continued pressure on affordability.
However, tenant demand has not kept pace with previous seasonal trends. Viewings per property dropped significantly, averaging just 40 in April, down 35% from the same period last year and 40% below April 2023 levels. The data highlights the growing importance of accurate pricing as landlords risk extended vacancy periods without competitive rental rates.
Geographically, the gap between demand in inner and outer London remains minimal. Properties in outer London averaged 94 viewing requests, compared to 83 in inner boroughs. Hammersmith and Fulham led demand for the third straight month, averaging 493 viewing requests per property, followed by Barking at 250.
Supplementary insights from Rightmove suggest a market in transition. A rise in rental supply, up 11% year-on-year, is coupled with a 7% decline in tenant inquiries. Notably, 25% of listings have undergone price reductions, the highest proportion since 2018. Despite these pressures, rental prices have reached record highs for the 14th consecutive quarter, albeit with slower growth at just 0.1% in March.
Contributing factors may include increased buy-to-let lending, which is up 32% year-on-year, and a potential shift toward homeownership amid improved mortgage rates and anticipated stamp duty changes. While the Renters’ Rights Bill has yet to affect the market directly, its implications are being closely watched.
Long-term trends show rents have risen faster than wages, with a 40% increase in rents since 2020 compared to a 31% rise in average earnings.
