For much of the past three years, London landlords have become used to one headline: rents are rising.
But as we move further away from the post-pandemic rebound, the data is beginning to tell a more nuanced story. Rental prices in London have not fallen — but the pace of growth has clearly slowed, and in some areas, rents are not moving at all.
This shift matters. But what does it really mean?
For landlords, it signals a market moving back towards balance rather than one driven purely by scarcity and urgency.
What the official data really tells us
The Office for National Statistics (ONS) remains one of the most frequently cited sources on rental price growth, and recent figures suggest rents in London are still rising on an annual basis.
However, as we explored previously in Are London rents rising fast? The devil is in the data, it is important to understand how the ONS measures rents — and why this can produce a very different picture from what landlords see when pricing a property today.
Unlike the major property portals, which track newly advertised rents, the ONS measures rents across all private tenancies, including long-standing agreements signed years ago. This means its data captures both new lets and so-called “legacy” tenancies that have not been re-priced for some time.
During the pandemic, many landlords froze or reduced rents to retain good tenants amid uncertainty, particularly in parts of central London. Those lower rents were often locked into ongoing contracts. As these tenancies gradually come up for renewal, increases are now being applied — sometimes several years after the initial market recovery.
The result is a lag effect. The ONS data is reflecting delayed, catch-up adjustments from the Covid period, rather than purely current market dynamics. This can create the impression of strong annual growth even as rents on newly listed properties are rising far more slowly, or in some areas stalling altogether.
That does not make the ONS data wrong — it simply means it answers a different question. For landlords assessing what their property might achieve if marketed today, it is essential to view ONS figures alongside real-time portal data rather than in isolation.
What the property portals are reporting
Looking across the major portals, a consistent theme emerges.
Zoopla
Zoopla’s latest rental market report highlights that rental growth across London has slowed markedly. Their analysis points to:
Supply improving as more homes return to the market
Demand easing from its post-Covid peak
Affordability acting as a natural ceiling on further increases
Zoopla also notes that rental growth is now lagging behind wage growth — a reversal of what we saw during the height of the rental crunch.
Rightmove
Rightmove’s data tells a similar story. While rents remain historically high, the pace of increase has cooled, particularly in inner London. They attribute this to:
Increased choice for tenants
Longer listing times in some boroughs
A more price-sensitive tenant base
In short, tenants are still moving, but they are negotiating more and walking away faster from overpriced listings.
A return of supply, especially build to rent
One of the most important structural changes has been the return of supply following Covid. During the pandemic, many landlords exited the market temporarily, while new schemes were delayed.
Now, supply is recovering, particularly through small and mid-sized build-to-rent developments. These professionally managed schemes are adding stock back into the market at scale, especially in regeneration areas and outer London zones.
This does not mean oversupply — but it does mean competition has returned.
The affordability reality
Even with rents not rising, London remains one of the least affordable rental markets in the developed world.
Research from the Resolution Foundation highlights that the UK — and London in particular — offers some of the lowest levels of value for money in housing among advanced economies. Tenants in London spend more of their income on housing, often for smaller or lower-quality homes.
This matters because affordability ultimately limits how far rents can rise. When rental costs outpace wages for too long, demand does not disappear — but it does become more selective.
What this means for London landlords
This is not a market correction in the negative sense. Rather, it is a market recalibration.
Well-priced, well-presented properties are still letting
Unrealistic pricing is being challenged more quickly
Service, responsiveness, and property quality matter more again
For landlords, this shift rewards realism rather than speculation. Yield is increasingly driven by minimising voids and tenant turnover, not simply chasing headline rent increases.
A market shifting, not stalling
It would be easy to frame this as bad news. In reality, it is a sign of a healthier rental market.
A slower pace of rent growth:
Supports longer tenancies
Reduces churn and void periods
Creates more sustainable landlord-tenant relationships
London’s rental market is not cooling — it is normalising.
At Letio, we believe transparency and data matter more than headlines. Understanding where the market is shifting — and why — allows landlords to make smarter and more strategic decisions in a changing landscape.
The days of frantic bidding wars may be behind us for now, but a balanced market brings its own opportunities, especially for landlords who price sensibly, manage professionally, and plan for the long term.
