London rents push residents out as new rules take effect

London residents are increasingly leaving the capital as rental costs rise, according to new data and campaigners who gathered in central London on Saturday to demand stronger affordability protections. Tenant groups, housing campaigners, and trade unions used the national housing demonstration to press for tougher measures, as the Renters' Rights Act approaches implementation.

 

Official figures underline the pressure on household budgets. The Office for National Statistics (ONS) said average UK monthly private rents rose by 3.5% to £1,367 in the 12 months to September 2025. Campaigners argue that, for many renters, the pace of increases is outstripping what incomes can absorb, contributing to decisions to relocate away from London.

 

Separate analysis points to a sharp narrowing of lower-cost options inside the capital. Data from Spareroom shows that only five London postcodes now have average room rents below £800. That compares with 81 postcodes in 2020, highlighting how quickly the availability of relatively cheaper rooms has contracted across the city.

 

New survey results also suggest that renters are experiencing instability alongside higher costs. In a survey of 4,500 tenants in England, 30% of those who stayed in the same rental home said their rent had increased since the Renters' Rights Act received Royal Assent. The same survey found 11% had faced eviction or received notice of eviction over that period.

 

The Renters' Rights Act is due to take effect on May 1 and introduces new rules on rent changes and tenant protections. Under the Act, landlords must give two months’ notice before raising rent, and increases are limited to once a year at the market rate. Tenants will be able to challenge what they consider excessive increases through a first-tier tribunal.

 

The legislation also bans bidding wars for new tenancies, a practice that campaigners say can push rents higher by encouraging prospective tenants to offer above the advertised price. Supporters of the Act say these changes strengthen security and improve fairness in how rents are set and increased.

 

Critics, however, argue the reforms focus more on security of tenure than on the underlying affordability problem. They are calling for additional steps, including rent controls and caps, to limit large rent jumps. How far the new rules will ease cost pressures remains uncertain, particularly as the Act still allows annual increases at market levels.