Average rents in London fell 7.6 percent year-on-year in March, marking a dramatic reversal from February’s 3.7 percent increase and signalling a clear shift in the capital’s lettings market.
The data, from lettings platform Hello Neighbour, shows tenant demand continuing to fall, with just 30 enquiries per property recorded in March – the second lowest monthly level in three years. Demand stood at 32 enquiries in February and 36 in January.
Affordability driving tenant caution
Despite the decline, London rental demand remains well above the national average. The 30 enquiries per property compares to the Rightmove average of just 12. March is typically a quieter month for lettings, with activity usually recovering from April onwards.
However, Richard Jenkins, chief executive of Hello Neighbour, said there is little doubt that rental levels are likely to remain subdued this year as affordability continues to challenge tenants.
The figures follow Landlord Knowledge’s report on rental affordability, which found wage growth now outpacing rent increases in many areas – though London remains among the least affordable markets.
Landlord nervousness ahead of RRA
Hello Neighbour noted a small increase in landlords selling properties in March, though not enough to indicate a significant trend. There is, however, clear nervousness ahead of 1 May and the introduction of the Renters’ Rights Act.
The shift in London contrasts with national rent data from HomeLet released this week, which showed UK rents rising for the first time in five months. The divergence suggests London’s market is correcting faster than the rest of the country after years of above-inflation growth.
Jenkins said landlords can prepare for the regulatory changes by attending the company’s webinar with The Independent Landlord on 15 April, which will cover practical steps ahead of implementation.
What this means for landlords
- If you let in London: Expect longer void periods and be prepared to price competitively – tenants are more selective than at any point in the past three years.
- If you’re considering selling: The current pause may be temporary – wait for post-RRA clarity before making permanent decisions based on short-term trends.
- Watch for: April activity levels, which typically recover from March. A sustained decline would signal a more fundamental market shift.
- Bottom line: London’s rental correction is real but demand remains healthy by historical standards – the market is cooling, not collapsing.
Editor’s view
A 7.6 percent annual drop sounds alarming, but context matters. London rents rose unsustainably for years, outpacing wages and forcing tenants to the brink. This is a correction, not a crisis – and for landlords with realistic expectations, 30 enquiries per property is still a queue.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 7 April 2026
Sources: Hello Neighbour
Related reading: Rental affordability eases as wage growth outpaces rent rises
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
