London landlords are once again under political and media fire for supposedly fuelling runaway rents. But new analysis by Benham and Reeves tells a very different story – one that shows real-terms rents have barely budged over the past decade.
Despite average monthly rents rising 39.2% in cash terms from £1,616 in 2015 to £2,249 in 2025, the real increase – once inflation is factored in – is just 0.7%. That’s £15 over ten years. For many landlords, that’s less than the cost of a service charge rise or a new EPC certificate.
Real-Term Rent Falls Across Inner London
Far from profiteering, landlords in 12 London boroughs have seen rents fall in real terms, including:
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Westminster: -4.9% (−£168)
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Richmond upon Thames: -3.9%
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Camden: -3.1%
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Kingston: -2.8%
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Kensington & Chelsea: -2.3%
This trend challenges the dominant narrative that landlords are pushing rents higher to boost profits. In reality, many are absorbing rising costs just to stay afloat.
Outer London: Modest Real Gains Amid Surging Demand
Some outer boroughs did see stronger inflation-adjusted increases:
| Borough | Real-Term Rent Change | Monthly £ Gain |
|---|---|---|
| Barking & Dagenham | +16.5% | +£229 |
| Havering | +16.3% | +£228 |
| Bexley | +14.3% | +£194 |
| Redbridge | +12.0% | +£178 |
| Waltham Forest | +7.4% | +£130 |
Industry Insight: “Support, Don’t Scapegoat”
“There’s a widespread perception that landlords are to blame for the sharp rise in rents, particularly in London, but the data tells a very different story.”
— Marc von Grundherr, Director, Benham and Reeves
Von Grundherr points out that landlords are being squeezed on all sides:
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📈 Rising mortgage rates
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🧾 More red tape and regulation
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💸 Higher taxation
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🏚️ Increased maintenance and compliance costs
Yet many haven’t passed those increases onto tenants, and where they have, it barely keeps pace with inflation.
The Real Culprit? Supply Shortages
The PRS remains under pressure due to:
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A chronic shortage of rental homes
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Population growth and migration into urban areas
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Stricter lending criteria locking many out of homeownership
The outcome? Rising competition for fewer homes, not rising landlord profits.
Final Thought
This data doesn’t just correct the record – it’s a wake-up call to policymakers. Vilifying landlords may win short-term headlines, but it won’t solve the supply crisis. Without real support and reform, the capital’s rental affordability problems will only deepen.
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