Average prime London rental values increased by 4.6% on an annual basis in September, the fastest rate of growth in 18 months.

LonRes reports that values were 43.5% above their 2017-2019 (pre-pandemic) average as the sector has increasingly felt the impact of the Renters’ Rights Act.

The independent property analyst’s study also reveals an annual 14.9% drop in lets agreed and a 3.4% rise in new instructions. It says the stock of available rental properties increased on an annual basis, with 6.9% more homes on the market at the end of last month than a year earlier, although stock levels remain well short of typical historical levels.  

Factor

The impact of the Act continues to be a key factor in markets across prime London, according to the firm. However, as it doesn’t apply to tenancies where the annual rent is more than £100,000 there are effectively two rental markets. The proportion of exempt properties varies significantly by area and has been rising with recent rental growth. In Mayfair & St James’s 36% of properties let so far in 2026 have been over the £100,000 threshold, with Knightsbridge & Belgravia and South Kensington also over 20%.

Impact

Head of research Nick Gregori explains that the Act is likely to be having an impact on the market, from both sides of the supply-demand equation. “First, some landlords have exited the market, meaning more competition for the remaining properties,” says Gregori. “Second, those who have remained may be seeking a premium to account for the perceived greater tenants’ rights. The market continues to adjust to the new regime, complicated further by the high and growing proportion of exempt high value rental properties in some central London neighbourhoods.”

LonRes says its figures exclude listings in its Prime Fringe catchment (SE1, SE11, SW4, SW5, SW6, SW11, W4, W6, W9, W10) as these have been impacted by a change in the way listings are collected for its new rental checker calculator.

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