London Rental Market: September 2025 Snapshot

Fresh data from the HomeLet × Dataloft (PriceHubble) Rental Index shows London rents rebounding month‑on‑month while remaining broadly flat year‑on‑year—a market that’s active but rebalancing at a high level. Figures are based on achieved rents for brand‑new tenancies and are mix‑adjusted to smooth property‑type and location shifts, so they reflect what renters are actually paying. 

Headline for London

• Average rent: £2,199 pcm (+3.3% MoM, −0.1% YoY), sitting just 0.6% below the October 2024 peak. Rents rose in all but three London areas in September. See the overview card on page 8.

Boroughs: Where rents moved the most (YoY)

Top risers

• Hackney & Newham: +8.3% to £2,208

• Enfield: +5.8% to £2,014

• Merton, Kingston upon Thames & Sutton: +4.9% to £2,112

• Croydon: +3.3% to £1,598

• Hammersmith, Fulham, Kensington & Chelsea: +3.2% to £2,635
  Map and table on page 9; strongest/weakest chart on page 11.

Largest annual declines

• Camden & City of London: −9.7% to £2,291

• Tower Hamlets: −7.3% to £2,227

• Haringey & Islington: −6.0% to £2,086

• Brent: −5.0% to £2,242

• Barnet: −4.6% to £2,179
  Details on page 9; ranking on page 11.

Five‑year context: Structural growth hasn’t gone away

Despite this year’s re‑balancing, the five‑year picture is still strong. Merton, Kingston upon Thames & Sutton post the largest five‑year increase: +53.6% (September 2020 → September 2025), underscoring how outer‑south‑west micro‑markets have structurally repriced. See the twin maps on page 10.

Affordability: High, but easing from last year

London renters spent 38.3% of gross income on rent in September 2025 (down from 39.0% a year earlier). Nationally, the ratio stands at 32.0%, also improving year‑on‑year. Time‑series on page 13; regional snapshot on page 14.

What this means if you let in London

• Price by micro‑market, not city average. With annual changes diverging sharply by borough, set renewal vs. new‑let pricing at neighbourhood level and track weekly enquiry/viewing volume. Pages 8–11.

• Lean into outer‑zone demand. September’s broad‑based MoM lift—and five‑year outperformance in areas like Merton/Kingston/Sutton—suggests sustained depth for well‑located 1–2 bed stock near transport hubs. Pages 10–11.

• Use affordability tailwinds to reduce voids. The modest improvement in rent‑to‑income ratios can support proactive renewals (e.g., early‑bird offers, light spec upgrades) without over‑discounting. Pages 13–14.

Source：
HomeLet Rental Index × Dataloft (PriceHubble), September 2025. Mix‑adjusted and based on achieved rents for brand‑new tenancies, with affordability calculated from actual tenant incomes. Full report (PDF): https://homelet.co.uk/-/media/project/barbon/homelet/rental-index/pdf/2025-33-september-homelet_dataloft_rental-report_72.pdf.