Spring Lettings Market Comment 2026

As spring takes hold in Prime Central London, the lettings market feels more settled than it did a year ago, though by no means quiet. Across Knightsbridge, Marble Arch and the surrounding core postcodes, demand remains healthy, but tenants now have a little more time to make decisions and pricing has become more sensitive. The frenetic conditions seen at the peak of the cycle have eased, yet well-presented, sensibly priced homes continue to let steadily.

The headline data tells a broadly consistent story. Reports state that average rental values across prime London were 0.5% lower in February than a year earlier. That may sound subdued, but it comes after an exceptional period of growth, and rents across prime London still sit 32.7% above their 2017 to 2019 pre-pandemic average. In other words, this is less a story of weakness and more a market finding firmer footing after several years of sharp upward adjustment.

That is certainly consistent with what we are seeing on the ground in Knightsbridge and around Marble Arch. The best stock still performs very well, particularly lateral apartments with strong presentation, good natural light, porterage or security, and a specification that feels immediately usable. What the market is less forgiving of now is over-optimism. Properties launched at yesterday’s price rather than today’s are standing out more quickly, while accurately priced homes continue to attract dependable enquiry and convert well. Realistic pricing is now critical to maintaining momentum as over-priced homes are taking longer to secure tenants.

At the upper end of the market, demand has remained notably resilient. While the overall number of tenancies started in the year to February was down 2%, tenancies above £5,000 per week were up 8%, and new prospective tenants registering at that level were 5% higher. That chimes with our experience in Knightsbridge in particular, where internationally mobile tenants continue to value flexibility and where best-in-class apartments remain very much in demand. For well-located, well-managed property, there is still a very solid tenant audience.

Void periods are no longer at the ultra-low levels seen at the most competitive point of the cycle, but they remain perfectly manageable for correctly positioned stock. The average time to find a tenant is now around 20 days, down from 26 days in January. In practical terms, that means landlords should still expect strong occupancy where properties are launch-ready and sensibly priced, even if tenants now have a little more room to compare options than they did twelve or eighteen months ago.

On the legislative side, attention is now shifting from anticipation to implementation. The Renters’ Rights Act is no longer simply on the horizon. The first phase of implementation begins on 1 May 2026, and the Government has now published the guidance and information landlords and agents need in order to prepare. From that date, Section 21 will be abolished, existing assured shorthold tenancies will become assured periodic tenancies, and landlords or agents must provide existing tenants with the Government’s official information sheet by 31 May 2026. We are already in the process of issuing the required information to all our tenancies managed or let-only.

The key changes landlords need to be aware of are clear enough now. Possession will move onto Section 8 grounds meaning landlords will still be able to recover their property where there is a valid reason, including sale or occupation by the landlord or a close family member, subject to the new rules, including a 12 month protected period at the start of a tenancy and four months’ notice for those grounds. Rent increases will generally move to a once yearly Section 13 process, new tenancy adverts will need to show an asking rent and cannot invite or accept bids above that figure, and for new tenancies landlords will not be able to demand more than one month’s rent in advance. For most professionally managed landlords, this is more a question of updated paperwork, process and timing than any fundamental change to the attractiveness of letting in Prime Central London.

Overall, spring 2026 finds the Prime Central London lettings market in reasonable health. Rental growth is no longer running away, but nor is the market slipping. Instead, we are seeing a more sustainable pattern, better levels of available stock, steady high-quality demand, and a sharper distinction between the best homes and the rest. For landlords that should be reassuring. Well-presented property, realistic pricing and experienced management remain the essentials, and in this market they continue to be rewarded. Plaza Estates continues to monitor conditions closely, and we remain on hand to advise clients through both the market and the upcoming legislative changes with the clear, practical guidance they need.

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