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A surge in London rents is coming

London’s rental market is shifting to a new phase of adjustment. Low returns and tax changes are driving landlords from the market, while rising wages and low unemployment are supporting tenant demand. As a result, fresh imbalances between rental supply and demand are building, which will increasingly push up rental prices. Assuming the disruption of a no-deal Brexit is avoided, we expect to see a surge in London rents across our forecast, with a cumulative 10% rise in the three years to 2021.

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