Tom Bill, head of UK residential research at Knight Frank, explores how early-year momentum in London’s lettings market faded as falling supply, regulatory uncertainty and...

London renters now spend 49.5% of their income on rent, down from around 50% in 2024, according to newly released market data from Benham and Reeves.

More Londoners are searching for rentals in the cheapest areas of the capital.

Over half of London leavers stayed within 50 miles of the capital in 2025, up from 47% last year, as buyers prioritised proximity over distance.

Average rental prices fell 4% in November to £551 per week, though year-to-date prices remain 2% higher than 2024 levels.

28% of London homes with private EV charging points have already found a buyer, despite more restrained pre-Budget market conditions.

The average £3.5 million prime central London home would need to shrink by 43% to fall below the mansion tax level.

Developments of 50 or more homes “where boroughs are minded to refuse” fall under the new potential strategic importance category.

Mid-market and lower-value homes have seen prices hold steady or rise slightly, compressing the gap with prime properties for the first time in 30 years.

London accounts for 66% (940 transactions) of all homes sold over £2 million across England and Wales this year, with an estimated annual tax charge of £15.8 million.