Prime rents hold steady in the capital, with seasonal readjustment in the regional markets.
Jessica Tomlinson, Associate Director, Savills Residential Research
The rental market across prime central London slowed over the final quarter of last year, in line with a typically quieter end to the year. Prime rents fell marginally by -0.1%, a shift from increases in Q3, but relatively on par with the same period a year previous. This leaves rental values up a total of 0.9% over 2025 as a whole.
The more discretionary markets, at higher price points, were the most impacted over both the final quarter and throughout 2025. Properties with weekly rents above £4,000 fell by -0.1% in the quarter and are down by -0.3% over the last year. By contrast, properties with rents below £1,000 per week increased by 0.3%, to deliver 2.4% growth over 2025. Here, more consistent demand and need-based moves continued to fuel increases in rents.
Activity continued to be stock-led and location-specific, with best-in-class properties outperforming. Across some of the most central locations, such as Marylebone and Mayfair, prime rents remain marginally higher than a year ago. Whereas, across Chelsea, Earls Court and Notting Hill, they remain slightly down over 2025, due to varying local supply and demand dynamics.
In London’s more domestic outer prime markets, rents remained flat in the fourth quarter, leaving them 2.4% higher than a year ago.
The South West was the only London region where rents increased in the quarter, albeit marginally (0.1%), with values up by 3.4% over 2025 as a whole. Here, domestic demand across all price points supported growth, with areas such as Putney, Richmond and Wandsworth experiencing an uptick in activity over the fourth quarter.
Conversely, rents across North West London fell by -0.5% in the final quarter, the most significant slowdown across the capital. While this still leaves them 1.5% higher than a year ago, increasing stock levels coupled with a widening gap between landlord and tenant expectations contributed to a price-sensitive year end.
Elsewhere, the final quarter saw slower demand and growing stock levels, in line with a typical seasonal shift. Tenants had more choice, with many taking longer to commit and therefore limiting activity. However, those properties presented to the highest standard continued to be the most popular and let well.
Rents for prime properties across the regional markets fell by a much more marked -1.1% over the final quarter of the year. Though a noticeable swing from a more active third quarter, this was in line with the historical seasonal trends typically experienced at the end of the year. Overall, rents still remain 0.9% higher than a year ago.
Across the commuter belt (within an hour of the capital), falls were less significant, with rents down by -0.4% in the quarter. Activity across lower price bands remained steady, with properties holding their value. However, the market for family houses was more sticky. Here, much of the traction is typically focused around the start of the school year, with demand slower over the final quarter. 2025 was no exception.
Elsewhere, rents for prime properties across larger regional towns and cities fell by a more significant -3.2% over the final quarter of the year. Increasing levels of vacant stock alongside new build completions put downward pressure on rents, particularly in Manchester and Birmingham. However, values still remain marginally higher than a year ago (0.2%) and are up by 28.4% since March 2020.
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