Advertised rents in London rose 7.6 percent year on year in October to an average of £2,401, according to new data from Hello Neighbour. The reading marks a sixth straight month of annual growth since the Renters’ Rights Act came into force on 1 May.
The pace quickened from 6.1 percent in September. Hello Neighbour weights its figures by the ONS Census 2021 bedroom mix and stresses they track asking prices on live listings rather than signed deals. Across the London homes it listed from August to October that have since let, the agreed rent settled 4.4 percent below the advertised figure.
Portal prices and cash actually banked are moving apart, and that split matters more than the headline for anyone setting a fresh let or preparing rent-review evidence.
RRA bids ban pushes opening rents higher
Since 1 May, landlords and agents have been barred from accepting offers above the advertised rent, while in-tenancy increases are limited to once a year. Hello Neighbour says that combination has encouraged landlords to list higher at the outset, because the published figure now works as a ceiling rather than a starting point for negotiation.
Richard Jenkins, chief executive and co-founder of Hello Neighbour, said prices were holding up because supply is falling. “If Zoopla is right, we can expect this trend to continue into the winter,” he said. Zoopla’s 14 September Rental Market Report put homes available to rent 6 percent lower than a year earlier across London and 13 percent lower in inner London.
This follows Landlord Knowledge’s September coverage of Hello Neighbour’s 6.1 percent reading, which found demand settling as affordability capped growth. October’s update shows the asking-rent line still climbing while enquiries eased to 30 per property from 34 in September.
Agreed rents lag 4.4% behind asking prices
The shortfall between asking and agreed rents deserves the closest attention. A month ago the gap looked nearer 3 percent, comparing Hello Neighbour’s 6.1 percent September reading with HomeLet’s 3.3 percent for achieved London rents, and the agent’s own lets suggest it has widened since. HomeLet’s October index is yet to appear.
Official data points the same way: the ONS index of private rents, released on 21 October, put London at £2,338, up 3.5 percent in the year to September.
Selectivity is rising on both sides. Goodlord’s industry survey found 51 percent of agents more cautious recommending applicants than a year ago and 26 percent of landlords readier to reject borderline cases. A TDS survey found half of landlords froze rents over the past year, up from 39 percent.
That caution feeds into reviews. Landlords preparing a Section 13 increase need open-market evidence, and asking prices that settle lower carry less weight than signed deals. Tribunals cut 7 in 10 landlord rent rises to an average of 7.7 percent, showing how closely increases are tested.
Hello Neighbour expects agreed rents to keep rising more slowly than advertised rents, with hard negotiation on opening prices through the rest of the year. More detail is published on Hello Neighbour’s insights page, where the agent also offers the underlying monthly data.
Demand holds at 30 enquiries per property
Enquiries held at 30 per property in October, down from 34 in September and above the 21 recorded a year earlier, but far below the 56 seen in October 2024 and 50 in October 2023. Hello Neighbour describes demand as steady across the year, if below historic peaks.
With fewer homes available, competition per listing stays firm even as budgets bite. That mix is why asking rents climb while signed deals face tougher haggling, a pattern the agent expects to run into winter.
What this means for landlords
- If you are reletting in London: check the asking rent against recent agreed lets nearby, not just live listings, since the 4.4 percent gap leaves room for voids at the top.
- Watch for: HomeLet’s October index, which will show whether achieved rents are closing the gap or falling further behind advertised growth.
- Bottom line: higher opening rents guard against the bids ban and the annual increase limit, but only agreed deals support a valuation or a Section 13 case.
Editor’s view
The 7.6 percent figure will grab attention, but the spread beneath it is the durable signal. Landlords who price to the portal yet negotiate from agreed data will fill homes faster.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 5 November 2026
Sources: Hello Neighbour, Zoopla, ONS
Related reading: Hello Neighbour: rental demand settles as affordability caps rent growth
Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
