Autumn has arrived in Prime Central London and after a summer that started on a tepid note, the lettings market found its feet. Rents rose again, the extra stock we saw in the spring has been absorbed, and well-presented homes at the right price are letting quickly. With the Budget on 28th October, landlords and tenants are understandably cautious, but the demand is firmly there.
The latest figures confirm what we are seeing on the ground. After dipping at the start of the year, prime central London rents have risen 1.8% over the last six months, the fastest half-year growth since January 2024, leaving them 1.3% higher than a year ago. In prime outer London the picture is stronger still, with rents up 3% over the year.
Demand is comfortably outpacing supply. In the three months to September there were 5.6 new prospective tenants for every new property coming to market in prime central London, the highest ratio in four years. Supply is the key. In May there were 23% more rental homes on the market than a year earlier; by the end of July that surplus had narrowed to under 7%. Fewer tenancies are changing hands, with 27.5% fewer lets agreed in August than a year earlier, which in our experience reflects both thinner stock and more tenants choosing to stay put.
It has certainly been a busy summer for the Plaza lettings team. Alongside our usual portfolio, we have been overseeing the launch of The Redcliffe at 55 Redcliffe Road, SW10, a building of ten apartments brought back to life through a multi-million pound refurbishment. Within a few weeks of launching we had let 75% of the building, with the first offers agreed at the full asking rent. It is a clear reminder that brand new, beautifully finished homes, priced correctly from day one, will always find tenants, even in a cautious market. A small number of apartments remain available, including a striking three-bedroom duplex, and we would be delighted to arrange a viewing.
Day to day, the best apartments continue to outperform: lateral space, good light, porterage and a turnkey finish. With bidding above the advertised rent no longer permitted under the Renters’ Rights Act, the asking price now does more of the work, and getting it right at launch matters more than ever. Some landlords are building a little headroom into asking rents to establish a true market level at the start of a tenancy, but over-ambitious pricing still leads to longer voids.
The market is not moving evenly. Tenancies over £100,000 a year sit outside the Act, and more than one in five prime central London lets so far in 2026 fall into that bracket. At the very top end, above £5,000 per week, average rents fell 1.4% in the second quarter, and tenants at that level are taking their time. Below that, from the one bedroom pied-à-terre to the family flat, demand remains solid.
On the legislative front, the next phase of the Renters’ Rights Act is now in view. The Government’s new landlord database, the ‘Register your rental property’ service, opens on 15th December 2026 and will roll out region by region through 2027, at £65 per property per year. A new Landlord Ombudsman will follow later in this phase. We will be guiding all of our managed landlords through registration well ahead of the London deadline of October next year.
All eyes are now on the Budget. Speculation centres on Capital Gains Tax and on applying National Insurance to rental income, while higher property income tax rates are already confirmed from April 2027. Borrowing has also become dearer, with the average five-year buy-to-let fix at 75% loan-to-value reaching 4.7% in August, up from 3.88% in January. For some landlords these pressures will prompt a review; for the market as a whole, they are likely to keep supply tight.
We expect activity to remain healthy through November before the usual pre-Christmas slowdown. Corporate relocations, international tenants and families seeking well-located homes should continue to underpin demand, while limited supply is likely to support rental values. For landlords, the fundamentals remain unchanged: price realistically from the outset, present the property well and act quickly on feedback. In a market where tenants have plenty of choice only when the right homes are available, getting the details right can make a significant difference to the speed and success of a letting.
If you are considering letting your property, would like an up-to-date rental valuation or need advice on preparing for the next phase of the Renters’ Rights Act, please contact Plaza Estates. Our team would be delighted to discuss your property and help you make informed decisions in the months ahead.
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Fraser Gregory
I started my career in 2008 at one of the largest agencies in the UK before taking the leap into the independent agency sector. I joined Plaza in 2012 and I’ve never looked back. Being part of a boutique family owned agency has been such a rewarding experience allowing me to be involved in every aspect of the lettings process. I have developed my skill and knowledge over the years by successfully passing the NFOPP Technical Award in Residential Lettings and Property Management. A nationally recognised qualification of Propertymark; The National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (ARLA) I’m proud to be part of a company that has been involved in the community for nearly 50 years.
If you want 5-star reviews and want to remove negative reviews from Google, contact me via my profile; my contact details are listed there.
SM
Dear Eitan
In this whole sorry saga, with headbutting, unproactive lawyers, and a comatose estate agent etc etc, you have been a beacon of light throughout. Efficient, professional and responsive. This would never have got done without you.
Thank you.
All the best.
Maurice Shasha
We have been using Plaza Estates for many years for all our property requirements (sales, letting and management) and are delighted with the results and service they constantly deliver and provide!
KS
I generally dealt with the Marble Arch branch most of the time, but I can also say that the Knightsbridge office was also exceptionally helpful and professional on the occasions I did deal with them. Plaza Estates in general are excellent.
YZ
Have interacted with Plaza Estates across a couple of sites and always been impressed. Maurice must be the hardest working, most dedicated, helpful and knowledgeable account manager for any company anywhere! A real asset to the team!
LI
I have been a client of Plaza Estates for over 30 years and received excellent service. Both Rodney on the rental side and Fiona in the property management area have been have been attentive and helpful and always willing to go the extra mile on the few occasions when there were problems.
SA
Hope both of you are doing well. I wanted to thank you for always being there for us and for addressing our concerns promptly; safe to say you have been the best agents I have had the pleasure of interacting with.
KR
We have owned our Flat since 2008, which we purchased through Plaza. Our relationship with Plaza goes back to 1982 when we purchased a nearby flat and Plaza have handled all our lettings since then. I would have no hesitation in recommending Plaza - they will find you a good tenant and ensure your ...
MS
Thank you again for all your advice and calm attitude and charm. Nobody could try harder than you, and for which, we really thank you and appreciate it all, not just now, but over the years.
Thanks again for everything!
