Summer Lettings Market Comment 2025

The Prime Central London lettings market has entered summer with a renewed sense of momentum. Following a slower start to the year, activity levels have picked up significantly since May, with applicant numbers, viewings, and agreed lets all trending upward.

Demand remains particularly strong from corporate tenants, with relocations driving much of the recent uplift. Sectors such as finance, tech, legal and energy continue to bring international professionals into central London, underpinning stability at the higher end of the market. Despite global economic uncertainty and shifting tariffs, London’s appeal as a business and lifestyle hub remains undiminished.

We have also seen a gradual increase in available stock compared to earlier in the year. While overall supply still falls short of long-term averages, more landlords are returning to the market, encouraged by robust rental values and steady demand. As a result, tenants are benefiting from slightly improved choice, especially in the £700–£1,300 per week bracket, although competition remains high for well-presented homes.

Rental values have continued to rise year-on-year, albeit at a slower pace than the sharp increases of 2022/23. Annual growth now sits around 3% across prime areas. Rents are still significantly above pre-pandemic levels, and with inflation cooling, we anticipate a more stable rate of growth in the coming months.

Properties are spending less time on the market before being let with most letting within two months, and an average of 14 applicants per listing reported in May. However, affordability is becoming a more prominent concern for tenants. Budget-conscious applicants are increasingly prioritising location and transport links over size or amenities, and flexibility on asking rent is often key to securing the right tenant quickly.

Looking ahead, we expect the market to remain active throughout the summer, particularly with an eye on September starts for both corporate and academic movers. The upcoming Renters Rights legislation may also influence landlord decisions later in the year, although for now it has had limited impact on day-to-day activity.

In summary, the Prime Central London lettings market is in good health as we move through summer 2025. A more balanced dynamic between supply and demand is emerging, but quality stock continues to perform strongly, and tenant demand remains high. For landlords, now is a good time to re-enter the market or review current tenancies, while tenants should act quickly when the right property becomes available.

The Renters Reform Bill is currently at the committee stage in the House of Lords and continues to progress through Parliament. While the final wording is still being debated, the bill is expected to introduce key changes such as the abolition of Section 21 and the move to a single system of periodic tenancies. It is likely to come into effect sometime between October 2025 and January 2026. We are monitoring developments closely and will keep all of our landlords and tenants fully informed as soon as the final details are confirmed.

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