After two years of strong rent growth and sharply increased living costs, Londoners are asking the same question going into 2026:Accuracy note: This guide reflects rental data and market commentary available up to November 5, 2025. Rental conditions change rapidly; always verify current figures with official sources and listings before making decisions. Key market indicators referenced below come from ONS, Zoopla, Rightmove and borough-level reports.
Will rents finally fall? The short answer: prices are likely to stabilise in many areas, but a steep city-wide drop is unlikely without major policy change or a sudden economic shock.This article gives you a practical, borough-aware 2026 playbook — whether you’re a renter hunting for the best deal or a landlord aiming to protect yield and reduce voids. We use the latest national and market reports to outline scenarios, actionable steps, and the precise CTAs you can take right away.
Where the market stands (end of 2025)
By late 2025 the national picture showed rental inflation slowing from earlier peaks: the Office for National Statistics reported UK private rent increases of roughly 5–6% year-on-year (August–September 2025 provisional estimates), with London still above the national average.
Market platforms also show a cooling pace of growth: Zoopla’s mid-2025 rental reports noted slower annual growth and a modest rise in supply, while Rightmove continued to record record-high average asking rents in London but with a stabilising trend in the rate of increase. These indicators together point to slower growth, not collapse.
Forecast for 2026 — three plausible scenarios
We summarise three realistic scenarios for 2026 and what each would mean for renters and landlords.
Scenario A — Stabilisation (Most Likely)
Supply improves modestly (new build and BTR units enter the market), tenant demand eases slightly, and mortgage costs edge down. Outcome: rents mostly level off, with small increases in high-demand pockets and mild falls where supply is strong. This scenario aligns with data showing slower rental inflation and rising new listings.
Scenario B — Soft Decline (Possible in some boroughs)
If mortgage rate falls accelerate and owner-occupation returns more stock to sale, some commuter and outer-London boroughs could see 3–6% soft declines as tenant demand shifts. Landlords with weak cashflow could be tempted to sell, increasing supply further.
Scenario C — Renewed Pressure (Less Likely)
If inflation spikes again or supply remains restricted while demand rebounds strongly (e.g., post-pandemic migration patterns), rents could resume upward pressure. This is less likely given 2025 signals but remains a tail risk.
Where change is most likely — borough breakdown (what to watch)
Borough-level dynamics matter. Multiple market trackers and borough resources highlight areas where supply, development pipelines, and transport improvements will drive either stabilisation or continued demand. We highlight 10 boroughs to watch for 2026.
- Croydon — significant development pipeline, good value for renters; stabilisation likely.
- Newham — long-term regeneration projects; steady demand.
- Barking & Dagenham — affordability and new stock will pressure rents up or stabilise.
- Waltham Forest — balanced demand; strong commuter links.
- Hounslow — improved transport links, attractive to families.
- Canary Wharf / Isle of Dogs — office-return dynamics may push demand for high-spec rentals.
- Westminster / Kensington & Chelsea — prime market remains competitive, but rises are limited by affordability ceilings.
- Hackney — still popular with young professionals; expect competition for good flats.
- Barnet — suburban demand, family-friendly; moderate change expected.
- Lewisham — improving value proposition near transport upgrades.
For finer-grain borough-by-borough data, use the London Rents Map or borough reports to tailor pricing before you list.
What renters should do in 2026 (actionable checklist)
If you're renting in 2026, be proactive. The market may offer more options — but the best homes still go fast.
- Expand search radius — look 1–2 stops out from preferred stations to find value.
- Be ready with documents — right-to-rent checks, references, payslips accelerate applications.
- Mid-month move tactic — less competition outside the last-week-of-month rush.
- Prioritise EPC A–C — energy-efficient homes reduce bills and are more attractive to landlords.
- Negotiate smartly — if supply rises, politely ask for minor incentives (e.g., minor repairs, flexible move-in dates).
- Use FTR London to message landlords directly and show preparedness — it improves your chance of being chosen. Browse London listings.
What landlords should do in 2026 (practical steps to protect yield)
2026 is a year for operational excellence. Small investments and quick responses win tenants and reduce voids.
- Refresh, don’t renovate — neutral deep clean + targeted improvements (kitchen splashback, lighting) recoup costs quickly.
- Improve EPC where cost-effective — loft insulation, smart thermostats, LED lighting — lower operating costs attract longer tenancies.
- Offer high-speed internet — advertise exact Mbps; many tenants will pay a premium for guaranteed speeds.
- Consider pet-friendly policies — with an extra deposit or pet rent many landlords unlock a bigger tenant pool.
- Speed up response times — the platform that answers first often secures tenancy.
- Price dynamically — monitor similar listings in your postcode each week and adjust if your property sits without viewings.
If your property is ready, now is often better than waiting: increased supply means less organic visibility if you delay. List your property on FTR London — upload in minutes and reach local renters directly.
Regulation & affordability — what to watch
Policy change remains a crucial variable. Greater tenant protections or stricter minimum standards (EPC thresholds, deposit enforcement) could alter small landlord economics. Media coverage and consumer groups continue to flag affordability issues as rents consume an increasing share of wages. For context, national reporting in late 2025 highlighted rising rent-to-income ratios and affordability pressures across the UK.
Action for landlords: keep compliance documents current (EICR, Gas Safety Certificate, EPC) to avoid fines and to be market-ready. If you need a reminder checklist, FTR London includes a landlord-ready checklist when creating a listing.
What if rents do fall? Scenario planning for both sides
For renters
Falling rents are good news — but be tactical. If you have a stable tenancy, weigh the cost of moving. If you are looking, a soft market is the time to achieve upgrades (better neighbourhood, larger place) without a huge premium.
For landlords
If your area weakens, consider: shorter-term refurbs, professional photos, or adding furnished options (which often command higher weekly rates). Some landlords use temporary rent promotions to avoid long voids — cheaper than months of standing costs.
Key data sources & further reading
- ONS — Private rent and house prices, UK (2025 monthly bulletins).
- Zoopla — Rental Market Report (2025).
- Rightmove — Rental market updates and quarterly trackers (2025).
- CBRE / borough reports — borough-level supply & pipeline data.
- National & press coverage on affordability (The Guardian / Reuters).
