London has experienced a 7% increase in enquiries from prospective tenants over the past year, while the number of homes available to rent has fallen by 10%, Rightmove reports. Studios and one-bedroom properties are seeing the fastest growth in demand, despite advertised rents for these averaging £1,904 a month.
Across Great Britain, tenant enquiries are 2% below last year's levels, though the national number of homes available to rent is 0.4% higher. London's average advertised rent stands at £2,763 a month, marking a 3.1% rise year-on-year.
Colleen Babcock, a property expert at Rightmove, suggested that some potential first-time buyers in London may be delaying purchases due to affordability challenges. This could be encouraging some movers to remain in the rental sector longer, potentially explaining the rising demand for smaller rental homes in the capital.
Enquiries for studios and one-bedroom homes in London are up 10% year-on-year, compared with a 4% national increase. Demand for London's two-bedroom properties has risen by 6%, while three-bedroom homes saw a 2.5% increase. Nationally, enquiries for two and three-bedroom properties have fallen by 4% and 6% respectively.
London tenant demand had been around 7% below 2025 levels until the end of August, before rising above last year's equivalent level on 7 September.