The Rightmove report: A 2% national rental growth prediction

It is easy to get caught up in the headlines, especially with the Rightmove Rental Trends Tracker published only yesterday, Thursday 15 January. According to Rightmove's property expert, Colleen Babcock, the rental market at a glance is becoming more settled and balanced. Their data shows average rents in London fell by 0.7% over the last three months, and nationally, competition has cooled from fourteen enquiries per property down to ten.

However, averages are just that. The report highlights that national average rents rose by 2% in 2025 and are predicted to rise by a further 2% in 2026. This long-term growth is exactly what I am seeing on the ground. My recent activity on Muschamp Road, in the heart of Bellenden Village, tells a story of consistent demand across the special pockets of Peckham and East Dulwich. Between late spring and summer, and most recently in December, I handled three separate lettings on my road alone.

For my busy landlords, there is plenty of reason for confidence despite the quarterly dip. While national growth was higher, annual rental growth in London still finished 2025 in positive territory at 0.8%, and the South East ended the year up 1.9%. Furthermore, landlord affordability is genuinely improving. Rightmove reports that average two year buy to let mortgage rates have dropped from 5.51% last year to 4.84% today.

While a 4.84% average is a step in the right direction, my role is to ensure my clients do significantly better. For a landlord with a larger portfolio, a new deal with his existing lender had recently been proposed at 4.1%. By working closely with my preferred mortgage brokers, a big shout out to Ben and Mark at Yomo Finance, we managed to locate a 3.95% two year fixed deal with lower fees and lower ERCs. On a typical London mortgage, that difference between the national average and what we have found represents a substantial saving for the landlord's bottom line.

When it comes to the highly regulated world of lettings, I work with a professional team at Parker James Estates who specialise in the field. Based just off Regent Street, they have a 30 year pedigree and operate as a bespoke, small and friendly team. Their focus is solely on looking after the client, not solely on the bottom line. They handle everything from the initial administration required to onboard a property to navigating complex legal requirements like selective licensing, which is now a requirement for landlords in many areas across London.

I provide a dynamic and broad based service that covers every aspect of the property cycle across all of London. This begins with strategic advice on your next purchase, whether you are finding a first home or downscaling to something more manageable. Although my primary focus is on purchasing, I provide a full sales listing service and manage everything from end-to-end, dealing with solicitors and brokers to safeguard your interests. My expertise also extends to helping neighbours with boundary disputes and offering sound property advice on refurbishments and developments. Whether calculating returns for rear extensions and loft conversions or coordinating garden landscaping, I ensure the job is done efficiently and carefully.

If you are looking for a steady hand to manage your London portfolio or need strategic advice on your next property move, let's talk.

While these professional insights are typically reserved for those of us within the industry, I believe it is important for my clients to see the full picture. If you would like a copy of the full Rightmove Rental Trends Q4 December 2025 Tracker report to review the data for yourself, please feel free to contact me directly and I will be happy to share it with you.