If you’re a landlord, or thinking of becoming one, you’ve probably wondered whether London still makes sense. Borrowing costs are higher than many hoped, the rules around renting have changed, and capital growth has been muted.
Yet the lettings market tells a more encouraging story than the headlines suggest. So, is London still worth investing in this autumn? We think so, provided you’re prepared, realistic about the numbers and well supported.
According to Rightmove’s Rental Trends Tracker, annual rental growth in London has strengthened from 0.8% in Q4 2025 to 1.4% in Q1 2026 and 2.9% in the latest quarter, taking average advertised rents to £2,791 a month.
That follows a period of slowing growth from the 16% annual peak recorded in Q3 2022, and the latest figures suggest pressure on rents is building again.
The cause is a familiar one. Tenant enquiries in the capital rose 7% year on year in September, while the number of available rental homes fell 10% over the past 12 months.
London and the North East were the only two regions in Great Britain to record an annual increase in tenant demand. For landlords, a market with plenty of tenants and limited choice is a good place to hold a property.
Our own figures show a 14% rise in tenant portal enquiries since the Renters’ Rights Act came into force on 1 May, alongside a 3% increase in move-ins.
The gap between the two is telling: tenants no longer have a fixed deadline to move, so they’re taking longer to weigh up their options.
As our Head of Lettings, Katinka Hill, explains: “Enquiries do not always translate into new tenancies. However, our 3% increase in move-ins shows that the market remains reasonably active.”
The practical takeaway is that strong enquiry levels are encouraging, but they don’t fill a property on their own. Rent, presentation and condition still decide whether interest becomes a tenancy.
Many landlords have adjusted well since the Act went live.
In September, the number of properties subject to rent reductions fell 20% year on year, which suggests more landlords are setting achievable rents from the outset.
With rent increases now limited to market level once a year, reviews need to rest on clear evidence of what comparable homes are actually achieving.
Conditions also vary across the capital.
Our regional figures show rents rising by 6.6% in South West London, while viewings in North and East London are up by almost 20%. A price that works on one street may not work a mile away, which is why local evidence matters so much.
If you’re financing a purchase, interest rates remain the main constraint. The Bank of England held the base rate at 3.75% in September on a 6 to 3 vote, with three members wanting an increase to 4%, and fixed mortgage rates rose again that month. The next decision is due on 5 November.
The sensible response is to stress-test your figures at today’s rates rather than the ones you hope for. Investors borrowing less, or putting down a larger deposit, are better placed to cope if rates stay high.
With capital growth muted, rental income is doing much of the work, so the yield needs to stand up on its own. The Autumn Budget is another date to watch, but rumour makes a poor foundation for a purchase.
The forthcoming Landlord Register also requires careful consideration. Registration will require landlords to provide details about themselves and every property they let, and to keep ownership and contact information up to date.
As Dirk Dette, Director of Compliance at Campions Group, our parent group, notes, most of what’s requested relates to obligations landlords should already be meeting, but compliance will become more visible. Missing documents and expired certificates will be easier to spot, so now is a good time to check your paperwork.
London isn’t one rental market. It’s hundreds of small ones, and the difference between two streets can be the difference between a property that lets in days and one that sits empty.
That’s why Chestertons combines street-by-street local expertise with a connected London-wide network.
The second part isn’t a claim about size. Our branches work together as one team, matching tenants and landlords across London rather than limiting opportunities to a single postcode.
A tenant who starts searching in one neighbourhood can be introduced to the right home in another, and your property can reach suitable applicants well beyond its own area. For landlords, that means a better chance of finding the right tenant, and of moving forward with more certainty and less friction.
Letting and managing a property can feel stressful and fragmented, with different people handling different pieces. We aim to bring those pieces together so you aren’t left chasing updates.
Our people are experienced, and you can expect clear, practical guidance on rents, compliance and tenant selection, along with proactive communication so you hear from us before you have to ask.
When something doesn’t go to plan, you’ll find calm, constructive problem-solving rather than panic, and close attention to the details that can make or break a tenancy.
London’s lettings market in autumn 2026 offers a compelling combination for investors: high rents, limited supply and continued demand from people who want to live and work in the capital.
With capital growth muted, regular rental income is an important part of the investment case. A shortage of available homes supports demand for well-presented properties, but buying at the right price and understanding the full costs of ownership remain essential.
There is also a longer-term opportunity in how tenants view their homes. For many, renting is a considered choice that gives them access to the neighbourhood, transport links and lifestyle they want. A rental property can become somewhere to settle, build routines and feel part of a community.
Landlords who recognise this and offer a comfortable, well-maintained home with responsive management can encourage tenants to stay, reducing the disruption and expense of an empty property and the search for a new occupier.
The rules are tighter and borrowing costs remain a constraint. But for landlords who take a long-term view, price realistically and stay on top of compliance, London’s combination of rental income and sustained housing demand can still add up to a sound investment.
If you’d like to talk through the numbers for a specific area or property, our teams are happy to help.