Landlords in London are beginning to re-enter the market, with new research from Chestertons indicating a rise in tenant demand. The data shows that one in four landlords who had put their properties up for sale have now chosen to relet them.
Chestertons also reports that many landlords have successfully assessed achievable rents following the Renters’ Rights Act. The number of properties subject to rent reductions fell by 36% year-on-year in May, followed by small increases in June and July, and a further annual decline of 20% in September.
Tenant demand has increased, with Chestertons recording a 14% rise in tenant portal enquiries and a 3% increase in move-ins. Rightmove's rental trends tracker shows annual rental growth in London accelerated from 0.8% in Q4 2025 to 2.9% in Q2 2026, bringing average advertised rents to £2,791 per month. However, this growth remains below the 16% peak seen in Q3 2022.
Conditions vary across London, with Chestertons' regional figures showing rents rising by 6.6% in South West London and viewings increasing by almost 20% in North and East London.
The upcoming PRS Database is expected to make it more difficult for rogue landlords to operate. Landlords will need to provide property information, including address, number of residents and bedrooms, and copies of gas, electricity, and EPC documents.