Rightmove says demand from prospective tenants in London has risen above last year’s levels this month, bucking the wider national trend.

Rightmove’s Daily Demand Tracker shows that tenant demand in London moved above the equivalent 2025 level on September 7 and has remained ahead since. 

Rental demand is measured by the number of enquiries sent to letting agents by prospective tenants on Rightmove.

While rental demand in London is now 7% higher than at the same point last year, demand in the capital had averaged 7% below 2025 levels over the year to date, highlighting the scale of the recent turnaround. 

By contrast, rental demand across Great Britain overall remains 2% below last year’s levels.

London is now one of only two areas currently recording year-on-year rental demand growth. The North East is also seeing demand rise, while every other region remains below 2025 levels.

The increase comes despite a reduction in the number of homes available to rent in the capital compared to last year. 

While the number of available rental properties across Great Britain is 0.4% higher than at the same point last year, London’s rental stock is 10% lower.

London’s rental market also remains significantly more expensive than the national average. 

The average advertised rent in London is currently £2,763pcm (+3.1% year-on-year), compared to the national average of £1,578pcm (+2.4% year-on-year).  

Much of the increase in demand is being driven by smaller rental homes. Demand for 0-1 bedroom rental properties in London is up 10% year-on-year, compared with a 4% increase nationally.

Despite being the fastest-growing part of the market, smaller rental homes in London remain significantly more expensive than elsewhere. The average advertised rent for a 0-1 bedroom property in London is currently £1,904 per month, compared with £1,150 nationally.

Demand for larger rental homes is also rising in the capital, though at a slower pace. 

Demand for two-bedroom properties is up 6% year-on-year, while demand for three-bedroom homes is up 2.5%. By contrast, demand for two-bedroom and three-bedroom rental homes nationally is down 4% and 6%.

Colleen Babcock, Rightmove’s property expert says:“One possible factor behind London’s recent rise in rental demand is that some would-be first-time buyers may be taking longer before committing to a purchase. 

“Affordability remains a challenge for many aspiring homeowners in the capital, particularly when it comes to saving for a deposit and bridging the gap between house prices and earnings.

“Mortgage rates remain relatively high and close to some of the highest levels seen in recent years, while the gap between house prices and earnings in London continues to make home ownership a challenge for many aspiring buyers.”