London's Rental Market Rebounds: A Positive Shift in Property Values

Recent data from property consultancy LonRes has revealed a significant recovery in London's rental market. After experiencing consecutive monthly declines, the average rental values in the city increased by 0.3% in March, signaling a promising return to growth.

Rising Demand and Rental Growth

This resurgence in rental values is particularly noteworthy given that rents in London are currently 33.2% higher than their average levels from 2017 to 2019, prior to the pandemic. LonRes's findings indicate a robust demand for rentals, especially at lower price points where the supply remains tight. This imbalance is further highlighted by a staggering 36.3% increase in lets agreed and an impressive 61.7% rise in new rental instructions within the same time frame.

More Homes Available on the Market

The data also suggests an increase in the stock of available rental properties, with a notable 48.4% more homes on the market across prime London compared to last year. This upsurge is attributed to a recovery in listings, as many agents had previously withstood listing properties in a competitive post-pandemic market.

Strong Demand Evident in Shorter Timeframes

Another indicator of the demand strength is the average time to secure a property. In the first quarter of 2026, the average duration between listing and move-in across prime London was only 62 days, a decrease from 69 days recorded in early 2025. This statistic underscores the quick turnaround in the rental market, especially at lower price points, further cementing the notion of sustained demand.

As the London rental market continues to show signs of life with upward rental trends and decreasing vacancy times, it presents both challenges and opportunities for renters and landlords alike. The return to growth is indeed an uplifting development amidst previous uncertainties.