Rental Market in London Sees Positive Turn in March: A Ray of Hope

In a promising development for the London rental market, data from property consultancy LonRes indicates that rental growth for the city's most expensive properties has returned to positive territory as of March. This upward trend marks a noteworthy turnaround following three consecutive months of decline.

Strong Demand in Rental Sector

The year-on-year analysis showed that average rental values experienced a modest increase of 0.3% in March, suggesting that demand remains relatively robust, particularly in the lower price segment where supply is notably constrained. LonRes reported a remarkable 36.3% annual increase in lets agreed alongside a staggering 61.7% increase in new instructions. This data reinforces the idea that renters are actively seeking opportunities in the market.

Growth in Rental Listings

Additionally, the stock of available rental properties also saw an annual increase, with 48.4% more homes listed across prime London compared to the previous year. This supply boost is believed to be a recovery from prior years when fewer listings were necessary to close deals. Thus, while listings have surged, they reflect a more accurate portrayal of the market’s health rather than an overwhelming oversupply.

Analysis of Time on Market

An intriguing indicator of demand strength is the average time properties spend on the market. In the first quarter of 2026, properties averaged just 62 days from listing to move-in, outperforming both the previous year and the long-term average of 69 days. The data reveals a distinct trend across various rental price points, particularly showing faster letting times in lower price brackets, suggesting sustained interest among renters looking for affordable options.

The latest metrics provide a sense of optimism for both landlords and tenants as the London rental market continues to navigate its post-pandemic recovery. With values stabilizing and demand seemingly on the rise, stakeholders within the property sector can look forward to more balanced conditions in the year ahead.