The South London Rental Market: From Uncertainty to Opportunity

The lettings market here in London has turned a bit of a corner…

There really is a different picture shaping up to the one we were looking at just six to nine months ago. The late Spring, early Summer brought a change of tone to the lettings market in the capital – reflected in many ways across the country but perhaps amplified to some extent here.

In South London, the lettings market felt like it was holding its breath.

Landlords were nervous about the incoming Renters' Rights Bill, which was going through interminable rounds of debate – and the industry (and even the mainstream news) was awash with headlines predicting a mass exodus from the rental sector.

Fast forward to today, and that scene is beginning to look remarkably different.

At Your Home Managed, we're seeing firsthand what the data is now confirming: the predicted landlord flight hasn't materialised – not to the degree being discussed in doomsday scenario terms.

Instead, as landlords have gained clarity on the Renters' Rights Act roadmap and understood what the changes actually mean for their investments, confidence has returned. OK, confidence tainted by irritation in a lot of cases – but irritation is a few steps removed from glumness, which had been an emotion weighing down upon the market through the mid-part and second half of 2025.

Now? We are seeing a South London lettings market that is not just stable but thriving.

 

Strong Rents, Growing Demand

The numbers tell a compelling story. Rental values remain robust, with September 2025 seeing average London rents hit nearly £600 per week – the highest September figure in four years. More importantly, rents have continued to hold firm, up almost 12% year-on-year as we entered 2026 (see data from the Office for National Statistics (ONS) here).

Particularly encouraging is the strength of demand.

After the seasonal summer dip, January brought a revival that exceeded expectations. Tenant interest surged by 83% from December, while the number of tenants making offers jumped by a third. This was not just a January blip: the momentum has carried through into February, setting the tone for what is shaping up to be a busy spring market.

 

The Prime Market Leads the Way

Central and South London have been standout performers. Central London saw tenant interest jump 15% year-on-year, with South London not far behind. The prime market, in particular, has shown remarkable strength – likely encouraged by the current weakness of the pound making London property more attractive to international tenants.

But this is not just a prime market story. The broader South London market is following suit, with rental costs in our area climbing 5% from a year ago, comfortably outpacing the citywide 2% increase. Areas like Wandsworth and Richmond have emerged as the most sought-after locations for renters this January.

 

Supply Meets Demand

One of the most positive developments has been the growth in available stock. New listings are up 11.7% over 12 months and already 2% year-to-date, and available properties are up 51% from December levels. This increase in supply, far from weakening the market, has actually helped it stabilise and mature.

The market competitiveness data tells us everything we need to know about the current balance. We have moved from over twenty renters per available property last August to around thirteen renters per property now. This represents a healthier, more sustainable market – one where landlords can still achieve strong returns while tenants have genuine choice.

 

Looking Ahead: A Balanced Spring Market

As we move deeper into February and approach the traditionally busy spring letting season, the fundamentals of the local lettings market look sound. Landlords who stayed the course are seeing their confidence rewarded with strong rental yields and steady tenant demand. Those who understand the Renters' Rights Act changes – particularly the end of Section 21 evictions and the shift to rolling tenancies – are recognising that professional property management becomes even more valuable in this new landscape.

For South London landlords working with experienced agents, our message is clear: the doomsday predictions have not come to pass. Instead, we are seeing a market that is finding its footing, with increased supply meeting robust demand, and rental values that reflect the enduring appeal of South London living.

What we are seeing here is opportunity. As tenant budgets rise and demand strengthens week by week, spring 2026 is shaping up to be one of the strongest letting seasons in recent memory.