London Rental Landscape Shifts as Supply Rises and Rents Stabilise

After two years of intense rental inflation, London’s lettings market is starting to shift. Supply is up, competition is easing, and asking rents are levelling out — at least in some areas.

Zoopla data for March 2025 shows a 12% increase in rental listings across Zones 2–5 compared to the same time last year. Tenant enquiries are also down slightly, suggesting a cooling in demand.

The result is welcome news for renters: median rents have held steady in outer boroughs like Barking & Dagenham and Hounslow, and even fallen 1–2% in some city fringe postcodes. Central London remains pricey, but bidding wars are less frequent.

Several factors are driving the change. More landlords are re-entering the market after pandemic exits, and new build-to-rent completions are adding stock. The seasonal student rental push has also not yet peaked.

For landlords, this is a moment to review pricing and ensure properties are well-presented. Void periods are creeping up — especially for unfurnished or outdated homes. Professional management and tenant responsiveness remain key to performance.

Most analysts expect rents to remain relatively flat over summer, before possibly rising again in Q4 depending on interest rate cuts. But for now, London’s tenants have a bit more breathing space.