Another Rent Record High

30 Jul 2025
Image of a 'For Rent' sign with line graph ascending over a backdrop of London landmarks and a house

London’s rental market has reached yet another milestone, with the average advertised rent for new listings climbing to £2,712 per calendar month (pcm). This marks the 15th consecutive record high, according to Rightmove’s latest Rental Trends Tracker (Q2 2025).

While the quarterly increase is a modest 0.5%, it underscores the ongoing pressure on tenants. Compared to five years ago, average rents in the capital are now £417 higher per month - a staggering 44% increase since the start of the pandemic in 2020. This far outpaces the 36% rise in average earnings over the same period.

 

Signs of a Market Shift

However, having said all that, rent growth across the UK - including London - is beginning to slow. Outside the capital, annual rent increases have eased to 3.9%, the lowest rate since 2020, even as average asking rents hit a new high of £1,365 pcm.

 

What’s Behind the Slowdown?

The cooling trend is largely due to a better balance between supply and demand. Compared to this time last year:

 

In London, demand remains strong, but the market is recalibrating. Properties now take an average of 25 days to let, up from 21 days last year. Additionally, 24% of London rentals have seen price reductions - the highest rate since 2017 - suggesting tenants now have more negotiating power.

 

What This Means for Tenants

While rents remain high, the slowing pace of growth and increased availability offer some relief. A more balanced market means:

 

For those planning a move in the coming months, the trend suggests that rents may stabilise further if supply continues to improve.

Another Rent Record High

 

What This Means for Landlords

Slower rent growth might seem like a drawback, but there are encouraging signs for long-term investors:

 

With properties taking slightly longer to let, landlords should focus on competitive pricing and strong presentation to attract quality tenants. Those investing now are entering a less frenzied, more stable market - a solid foundation for sustainable rental income.

 

Looking Ahead

While supply hasn’t fully returned to pre-pandemic levels, the direction is clear: the UK rental market - especially in London - is recalibrating. Continued investor confidence and increased buy-to-let activity will be key to maintaining equilibrium and avoiding sharp fluctuations in rental rates and supply.

AI IMAGE OF AN EYE WITH A HOUSE AND LONDON LANDMARKS

As Rightmove’s Colleen Babcock puts it: “The big picture is that yearly rent increases continue to slow, which is good news for tenants. Supply and demand is slowly rebalancing towards more normal levels… the latest industry snapshot suggests more investors are taking out buy-to-let loans, which should help to bring even more homes to the rental market.”

This article is for informational purposes. Always seek professional advice before making any property decisions.

 

Need help navigating London’s evolving rental market? Contact Fuller Gilbert today for a free rental valuation.

 

Why Choose Fuller Gilbert?

With a passion for property & a commitment to delivering exceptional service, Fuller Gilbert & Company estate agent provides a comprehensive property sales, lettings and management service, with emphasis on quality, transparency and customer satisfaction.Whether you’re buying, selling, renting or investing, Fuller Gilbert combines in-depth local knowledge with a tailored approach to ensure every transaction is smooth and successful.

Get in touch

For more information about Fuller Gilbert & Company, or to discuss your property requirements, Please call 020 7581 0154, email: info@fullergilbert.co.uk or send a message via the contact form on our contact page.

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