Under the surface, the data shows a two-speed market: London quietly surging again, Scotland cooling for the second month running, and affordability tightening its grip on renters everywhere.
Let’s unpack the numbers - and, as ever, translate them into actionable intelligence for serious London landlords and investors.
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1️⃣ UK Headline: rents nudge upward, growth slows
Across the UK, average rents now stand at £1,345 pcm, up 0.1% month-on-month and 1.4% year-on-year.
Remove London from the mix, and the figure drops to £1,138 pcm, down 0.3% on the month but still 1.7% higher than a year ago.
So yes - growth continues, but it’s measured. The post-pandemic acceleration is gone; we’ve entered a phase of stability under strain.
For landlords, that means margins will increasingly depend on efficiency, retention and compliance, not rapid rent hikes.
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2️⃣ London: rents hit £2,218 pcm and keep climbing
London remains the gravitational centre of the UK rental market, and October reinforced that dominance:
• Average London rent: £2,218 pcm
• Monthly change: +0.9%
• Annual change: +0.3%
Those headline figures mark a return to steady confidence after a volatile first half of the year.
However, this isn’t uniform strength. The capital is fragmenting - with outer and mid-London boroughs carrying the torch while the traditional prime core lags behind.
🔝 Strongest performers:
• Hackney & Newham: +9.5% (for the second month running, London’s top performer)
• Lambeth: +4.9%
• Croydon: +4.3%
• Ealing: +3.3%
⬇️ Weakest performers:
• Tower Hamlets: -8.0%
• Camden & City of London: -6.4%
• Brent: -3.6%
• Haringey & Islington: -2.8%
What’s clear is that London’s value-driven zones - not its trophy postcodes - are setting the pace.
For investors, that underscores a long-held Base belief: postcode prestige doesn’t pay the rent - tenant affordability does.
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3️⃣ Scotland slips again, but still leads on annual gains
Scotland’s average rent dropped -2.5% in October, repeating September’s fall and confirming a short-term cooling.
Still, rents are 1.2% higher than a year ago, showing that long-term fundamentals remain strong despite policy pressures and affordability caps.
It’s a useful reminder that policy can distort markets, but not indefinitely. Demand, demography and deliverable housing stock always win out.
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4️⃣ Affordability: the invisible ceiling
Across the UK, tenants are spending 32.0% of their gross income on rent, up 0.8% year-on-year.
In London, that figure climbs higher - 37.8%, slightly improved from last year’s 39.0% but still uncomfortably tight.
This is the market’s new physics:
When renters are devoting a third of income to housing, rent inflation hits a ceiling - and service quality becomes the new differentiator.
For landlords, that means growth through better experience, not higher asking prices.
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5️⃣ Reading between the lines: a mature, disciplined market
The October data points to an increasingly rational market - and that’s no bad thing.
• Moderate rent rises are filtering out speculative operators.
• Affordability pressure is driving professionalisation.
• Regional resilience is proving that well-managed, energy-efficient stock wins tenants faster and keeps them longer.
It’s not boomtime - it’s balance. And balance rewards those who plan, measure, and manage meticulously.
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6️⃣ Where base fits in: outperforming through precision
At base property specialists, we’ve always played the long game — building systems, teams and processes designed for this exact phase of the cycle.
Metric base property specialists UK Average (HomeLet/sector data)
Average tenancy length 3.8 years ~1.6 years
Void period 8 working days (min 3 for works) 20–25 days
Rent arrears 0.2% (21-year average) 4–6%
Customer satisfaction 97.6% (1,318 verified reviews) <85%
Staff retention 7 years average tenure <2 years
Profit margin 2–3× industry average Sector median ↓
Legal disputes 0 in 21 years N/A
We call it operational excellence, but really it’s common sense:
Tech + training + transparency = trust.
Our integrated stack - Alto, Goodlord, PropertyFile, The Depositary, InventoryBase, Fixflo, Giraffe360 and more - streamlines every step from viewing to renewal.
We mandate a minimum three-day void window for works, attend monthly legal CPD, and invest in ARLA-qualified staff with 30 days’ paid holiday.
Why? Because happy, informed agents produce better outcomes for landlords - and happier tenants.
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7️⃣ What London landlords should do right now
🔍 Benchmark your performance
How long are your voids? How often do your tenants renew? What’s your arrears ratio?
If you don’t know, you can’t grow.
⚙️ Audit your agency’s tech stack
Digital referencing, repair tracking and compliance monitoring aren’t optional anymore - they’re operational hygiene.
🏗️ Re-assess affordability
At 37–38% income ratios, London renters are close to saturation. Focus on value retention, not rent escalation.
📊 Prepare for regulation
Renters’ Rights reform, energy efficiency targets and enforcement of management standards will accelerate in 2026.
base is already there. Are your agents?
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8️⃣ Final thought: slow growth rewards smart operators
October’s HomeLet data confirms that the age of runaway rent inflation is over - but the age of precision lettings has arrived.
London landlords who want to thrive in 2026 will need more than an agent - they’ll need a data partner. One who understands both people and policy, rent rolls and relationships, compliance and culture.
That’s what we built base to be.
