A new year often brings fresh expectations, but in prime central London lettings, consistency remains a defining feature. As we move into the opening months of 2026, the rental market continues to be shaped by familiar forces, limited supply and measured rental growth.
Over the end of the past year, prime central London rents have continued to edge higher, though at a more restrained pace than seen during the peak volatility of recent years. Annual growth across prime postcodes is now running at around 2%, reflecting a market that has largely found its footing. Well located apartments continue to perform most consistently, while larger and higher value properties remain more price sensitive, with tenants increasingly selective on both value and specification.
Supply remains a defining feature of the current market. New rental instructions across prime central London are still below long-term averages, a trend that has provided underlying support to rental values. Landlord decision making continues to be influenced by the soon to be introduced Renters’ Rights Act and tax considerations.
Tenant demand has remained resilient throughout the last quarter, supported by corporate relocations and international arrivals. However, tenant behaviour has continued to evolve with an increased emphasis on condition, efficiency, and immediate usability. Properties that align closely with these expectations continue to attract strong interest, while those that do not are taking longer to rent.
Time to let has lengthened modestly compared to the most competitive periods of recent years, though this is largely confined to homes that are either over-priced or require further investment. Correctly priced, well-presented properties in prime locations are still achieving steady enquiry levels and reliable conversion from viewing to offer, particularly when marketed with a realistic price from the outset.
Seasonal factors have also played their usual role. Activity softened towards the end of the year before beginning to recover in early January, a pattern consistent with historical trends. Against this backdrop, broader economic signals such as stabilising interest rate expectations and steady employment levels within professional sectors continue to support confidence in the prime lettings market.
Looking ahead, the outlook for early 2026 remains cautiously positive. Forecasts suggest continued modest rental growth across prime central London, underpinned by constrained supply and ongoing demand from both domestic and international tenants. While the market is unlikely to return to the sharp upward movements seen in earlier cycles, it remains fundamentally robust, particularly for properties that are well positioned and sensibly priced.
In Knightsbridge and Marble Arch, we expect these dynamics to persist. Homes that combine prime location with strong presentation and realistic pricing are likely to continue outperforming the wider market. As ever, strategic advice and local insight remain critical in navigating conditions successfully.
We are closely watching progress on the Renters’ Rights Act, which has now become law and will see its first phase take effect from 1 May 2026, including the abolition of Section 21 no-fault evictions and the shift to periodic tenancies and other tenant protections. At present the Government has not yet published the full guidance on how some elements should be applied in practice, particularly for existing tenancies. Once that guidance is released we will review it in detail and communicate the implications to all of our landlords and tenants, ensuring that we support everyone through the transition with clear, accurate information.
Plaza Estates continues to monitor the market closely and advise clients accordingly. Should you wish to discuss how current conditions may affect your property or your plans for the year ahead, our lettings team would be delighted to assist.
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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!
LT
Thank you for your kind help and your advice, it's been precious!
