London's rental supply has dropped following the introduction of the Renters’ Rights Act, according to new data from SpareRoom. The findings reveal that inner London flatshare supply decreased by 5% in the second quarter of 2026, coinciding with the Act's implementation and concluding a three-year period of growth.
Supply in north-west and south-west London also saw a year-on-year fall of almost 10%. West London is identified as the capital's priciest postcode area, with average rents at £1,043 per month, and currently has the lowest availability of rooms.
In contrast, east London's rental supply remained broadly unchanged in the year to Q2 2026. This area, along with north London, offers some of the most affordable rents, averaging £933 and £937 per month respectively. East London had more than twice the number of available rooms compared to north London in Q2.
Matt Hutchinson, director at SpareRoom, stated that where supply is most constrained, rents will increase faster. He noted that while supply is falling across the capital, the decline is not as rapid in east London.
This data emerges as the Office for National Statistics (ONS) reported that average private rents across the UK increased by 3.3% to £1,388 a month in the year to June.