By base property specialists – London lettings and property management specialists
The latest HomeLet Rental Index (November 2025) confirms what many professional landlords are now feeling on the ground: the rental market is no longer accelerating, but it is far from weakening. Instead, it has entered a more forgiving-but-fussy phase, where performance is dictated by location, affordability and management quality rather than headline demand.
For London landlords, this is where expertise matters most.
Below, we unpack what November’s data really tells us about the London PRS — and how landlords who operate with discipline, insight and strong management will continue to outperform.
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Headline view: the UK eases, London diverges
Across the UK, average rents fell slightly in November to £1,337 pcm, a monthly dip of 0.6%, marking the first month-on-month fall since January【turn4file0†source】.
However, annual growth remains positive, with rents 2.3% higher than November 2024 — confirming that this is a recalibration, not a reversal.
When London is removed from the equation:
• Average rent: £1,133 pcm
• Monthly change: -0.4%
• Annual change: +2.1%
This tells us something important: London is still propping up national performance, even as momentum cools elsewhere.
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London in November: a pause, not a pullback
In Greater London, the data shows a short-term softening but continued long-term resilience:
• Average rent: £2,197 pcm
• Monthly change: -0.9%
• Annual change: +2.1%
Fourteen of London’s 21 borough groupings recorded small monthly falls, but 13 areas still sit higher than a year ago.
This is not weakness — it’s price sensitivity asserting itself in a market where affordability has reached its natural ceiling.
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Which London boroughs are still outperforming?
The borough-level data is where the real story sits.
Strongest annual performers (London)
• Hackney & Newham: +9.0% (£2,149 pcm)
• Lewisham & Southwark: +7.5% (£2,366 pcm)
• Ealing: +7.1% (£2,250 pcm)
• Lambeth: +6.1% (£2,909 pcm)
• Croydon: +5.0% (£1,628 pcm)
These are value-led, well-connected boroughs where demand remains deep and affordability — while stretched — is still workable.
Weakest annual performers
• Hammersmith, Fulham, Kensington & Chelsea: -3.4%
• Tower Hamlets: -3.1%
• Bromley: -2.3%
• Bexley & Greenwich: -1.8%
Notably, many of these areas sit in higher absolute rent brackets, reinforcing the point that headline rents now matter less than relative affordability.
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The five-year view: London’s long game remains intact
Short-term monthly movement shouldn’t distract from the structural reality.
Over the last five years:
• London rents are up more than 55%
• Westminster remains the strongest five-year performer at +55.3%
This long-term uplift confirms that London’s PRS fundamentals — global demand, constrained supply and employment density — remain intact.
The difference now is that poorly managed stock no longer rides the wave.
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Affordability: the defining constraint of 2025
Affordability is now the single biggest governor of rental performance.
• UK renters: spending 32.2% of income on rent
• London renters: spending 37.6% of income on rent
While this is a modest improvement on last year (down from 38.6%), it remains historically high and explains why rent growth has slowed rather than reversed.
For landlords, this means:
• Rent rises must be defensible, not automatic
• Retention is now more valuable than re-letting
• Service, condition and responsiveness directly affect yield
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What this means for London landlords and investors
Buy-to-Let landlords
The era of “set it and forget it” is over. Returns now come from:
• Minimising voids
• Retaining good tenants
• Managing compliance and repairs proactively
In a flat-growth environment, operational efficiency is your margin.
Build-to-Rent (BTR)
November’s data reinforces the pivot toward mid-market BTR. Schemes that prioritise:
• Energy efficiency
• Transparent pricing
• Strong on-site management
are outperforming premium-only offerings in the current cycle.
PBSA
With affordability stretched in the wider PRS, professionally run student accommodation continues to absorb demand — particularly where it reduces total living costs through inclusive bills and strong management.
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Why professional management now outperforms the market
This is where base’s position as London specialists becomes critical.
In a market defined by affordability limits and micro-local performance:
• Void reduction matters more than headline rent
• Tenant experience directly affects income security
• Compliance certainty protects long-term value
Data like November’s HomeLet Index doesn’t reward amateurs. It rewards process, insight and discipline — precisely the environment Base has been built for over the last two decades.
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Looking ahead: what to expect into early 2026
Based on November’s data, we expect:
1. Muted headline rent growth across London
2. Continued outperformance in value-led boroughs
3. Greater divergence between professionally managed and poorly managed stock
4. Increased landlord reliance on expert agents as regulation tightens
The market is not getting easier — but it is getting clearer.
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Final word from Shoreditch
November’s HomeLet figures confirm that London’s rental market is no longer forgiving of mediocrity. It’s balanced, competitive and deeply local.
For landlords who understand their numbers — and partner with specialists who live and breathe London lettings — this is not a threat. It’s an advantage.
