Thereâs a stillness in the air this month - and weâre not talking about the first signs of autumn in Shoreditch. The September 2025 HomeLet Rental Index has dropped, and while surface-level stats might suggest stability, the detail paints a more nuanced, and in some boroughs, alarming, picture.
Whether youâre scaling a BTR portfolio, managing a single buy-to-let, or planning your next PBSA scheme, this is not the time to go on autopilot. Thereâs more under the hood than most headlines would have you believe.
Letâs dig in.
đ National Headline: Rents Hit a New High... But Is the Market Peaking?
- UK Average Rent: ÂŁ1,343 (up 1.1% month-on-month)
- Outside London: Flat at ÂŁ1,141 (up 1.5% YoY)
- London: ÂŁ2,199 (up 3.3% monthlyâbut just -0.1% annually)
Weâre now sitting at the highest ever recorded national rent, but the annual growth figure is still subdued, just 0.9% across theUK.
In London, a monthly jump of 3.3% seems bold, but itâs a bounce-back from earlier dips. Rents are still 0.6% shy of their October 2024 peak.
đ Translation for landlords: The growth is real, but fragile. This isnât explosiveinflationâitâs a market regaining balance.
đ Londonâs Market: A Tale of Two Cities (Again)
London boroughs continue to tell radically differentstories.
đ Top Performers (YoY):
- Hackney & Newham: +8.3% â this monthâs top riser
- Enfield: +5.8%
- Merton, Kingston & Sutton: +4.9%
- Croydon: +3.3%
- Westminster: +2.5%
âŹď¸ Underperformers (YoY):
- Camden & City of London: -9.7%
- Tower Hamlets: -7.3%
- Haringey & Islington: -6.0%
- Brent: -5.0%
- Barnet: -4.6%
Only three borough groups saw a decline in September alone, but the annual losses in areas like Camden and Tower Hamlets remain stark.
âĄď¸ For investors: Hackney is hot. Camdenâs cooling. This divergence matters. Those holding large, legacy assets in prime central zones may want to rethink their hold/sell strategies... or invest in serious amenity and tech upgrades.
đ 5-Year Growth Still Delivers, If You Chose Wisely
While annual figures wobble, long-term players are still winning.
- Merton, Kingston & Sutton leads the pack with a +53.6% increase since 2020.
This affirms our core belief at base: the long game wins in London, especially if you backed outer zones with regeneration potential.
đ¸ Affordability: Marginal Gains, Persistent Pressure
Nationally, renters now spend 32.0% of their income on rent, down slightly from last yearâs 32.6%.
Greater London sits higher at 38.3%, a smidge downfrom 39.0% last year. Still, that's nearly 4 in 10 pounds of income going to rent. Hardly sustainable for many renters.
đ¨ Investor watch-out: This is where rental caps and regulation chatter tends to brew. Keeping rent increases aligned with value - amenities, repairs, customer service - isnât just ethical. Itâs smart business.
đď¸ BTR and PBSA: Poised to Outperform
In a world where affordability is king and flexibility is queen, Build-to-Rent and Purpose-Built Student Accommodation continue to eat market share.
- Tenants aged 20â29 still dominate (especially in West Midlands and Northern Powerhouse regions).
- Most common rent band remains ÂŁ750âÂŁ1,000/month, well-suited to PBSA pricing models.
- Demand for energy-efficient, tech-enhanced, managed accommodation is growing, not shrinking.
For developers: Add genuine lifestyle value or risk becoming obsolete.
đ§ Base Insights: What This All Means for Serious London Investors
- Granular beats general: Borough-by-borough analysis isnât a luxury, itâs a necessity. Contact us for hyperlocal rent data before you acquire, refinance, or review.
- Donât just manage - optimise: The London market is rewarding those who treat tenants like customers, not commodities.
- Energy efficiency & service = retention: As affordability tightens, tenants are demanding homes that perform - not just âroofs over heads.â
- Resist blanket rent hikes: The affordability ceiling is real. Maximise revenue through value-add, not blunt increases.
- Be brave, not blind: If your central London stock is underperforming, be honest with yourself. Can it be repositioned... or is it time to reinvest elsewhere?
đŁď¸ What Weâre Watching Next
- Q4 demand patterns post-summer lets
- Tech adoption in BTR and agency spaces
- London borough regeneration funding announcements
đ Final Word from Shoreditch
The September 2025 rental market isnât screaming. Itâs humming. Those tuned into the right frequencies will find opportunity, stability,and even growth, but only if they lean into insight, not instinct.
At base, we donât do property by numbers. We do it by people, patterns, and precision. And we do it for the rebels, the innovators, the ones who dare to invest better.
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đŹ Need borough-level rental yield forecasts?
Planning a portfolio reshuffle?
Want to upgrade your lettings experience (for you and your tenants)?
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