London rents rose 6.4% year on year in June, the third consecutive monthly increase and the strongest reading of 2026 so far. 

This is according to the Hello Neighbour agency.

But it adds that averaged across the last three months, rents are essentially flat, down around 1%. 

June’s figure shows that the sharp declines of the spring have steadied, not that a new upward run has begun, insists the agency.

Demand told a similar story of quiet recovery. Enquiries per property rose to 43 in June, up from 37 in May and the highest point of the year. 

Hello Neighbour recorded 40 in June 2025, 51 in June 2024 and 80 in June 2023. 

This is the first month in 2026 where demand has pushed clearly above the equivalent month last year, and it remains comfortably ahead of the Rightmove average of around 12 enquiries per property. The London market is still busy by any national measure.

But there is a cautionary note. The Renters Rights Act, in force since May 1, means landlords can no longer accept offers above the advertised asking price. 

Hello Neighbour says: “The likely response is for more landlords to list higher from the outset, which could gradually push up advertised rents and inflate the year-on-year percentage without reflecting a real change in what tenants were paying before. 

“June’s uptick may carry some of this effect, though it is still too early to separate it cleanly from genuine market movement.”

Even so, the broader context has not changed. Rents ran well ahead of affordability over the previous two to three years, and 2026 has been a year of the market rebalancing toward what tenants can realistically pay. 

The agency concludes: “Our view remains that rents will stay broadly flat across the rest of the year, with the month-to-month swings we have seen reflecting seasonal patterns and the new pricing rules rather than any sustained trend.”

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