London's rental inflation seems to be declining as data released today, Tuesday, 4 March by Zoopla shows rents in the capital increased by 1.1 per cent in the year to January.

In comparison, in January 2024, rental inflation was up 5.1 per cent for the year and, over the last five years, it's been seven per cent.

This backs up figures released last week by The Standard that indicated London had reached 'peak rent' and prices were beginning to come down. The average rent in London now sits at £2,166 a month.

Richmond Upon Thames saw the second biggest rise in rents, increasing by 4.1 per cent to £2,174 a month.

The borough with the biggest fall in rents was Greenwich, which saw rents fall by 0.7 per cent to an average of £1,892.

Richard Donnell, Executive Director at Zoopla, said: "The average monthly rent in London now stands at £2,166, almost £1,000 above the UK average of £1,284.

"Rents are rising more slowly in London due to affordability constraints. Earnings are rising faster than rents (six per cent), which will be welcome news for renters who have faced steep rent increases over the last three years.

"The number of homes for rent in London remains an ongoing challenge given lower yields and the increase in mortgage rates.

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"There is a risk that upcoming rental reforms will compound supply side pressures further, keeping the pressure on rents."