The challenging prime London rental market is broadly steady according to the latest LonRes data.
LonRes data for June indicated an annual decrease of 1.1% in lets agreed and an 11.4% rise in new instructions.
The stock of available rental properties increased on an annual basis, with 19.1% more homes on the market at the end of June than a year earlier.
Average rental values rose by 2.4% on an annual basis in June.
This is the second consecutive rise, following six months of falls, but movements in either direction over the past three years have been relatively small as the market stabilised after the rapid growth seen from 2021 through to 2023. Current values are 37.1% above their 2017-2019 average.
The uptick in rental growth has coincided with the introduction of the Renters Rights Act (RRA) on May 1.
The data firm says: “It is still too early to make a direct link, but we will closely observe this dataset over the rest of the year to look for any impacts the policy change may have on the market.
“One other point to note with the RRA is that tenancies where the annual rent is over £100,000 are Common Law tenancies and therefore exempt.
“With recent rental growth this is covering an increasing share of the market, almost 1 in 8 properties across prime London let so far in 2026 were above the threshold.”
