<p>London's rental market has entered a period of adjustment in Q2 2026, as new legislation reshapes landlord strategies across the capital. The JLL Rental Index tracks average rents and agent sentiment within London, across the following JLL office patches:
    Finsbury Park, Wood Green, Nine Elms, City, Canary Wharf, Greenwich, Stratford and Kew.</p>
<p>This quarter tells a story of market adaptation. The Renters' Rights Act has prompted landlords to withdraw properties from rental stock, hoping to pivot toward the sales market. However, a weaker sales market means many have been forced to return to
    the rental market under more challenging conditions as they struggle to sell.</p>
<p>Despite turbulence in the sector, average rents across JLL offices rose 1% over the quarter, recovering from a quarterly decline of 0.4% in Q1. &nbsp;</p>
<p>Meanwhile, average annual growth accelerated to 2.3% in Q2, up from 2% last quarter. Greenwich leads at 6.4%, achieving its highest annual increase since Q2 2024.</p>
<p>According to Dataloft, available stock to rent in London has expanded dramatically to 165,275 properties in June 2026, representing a 72% surge from the same period the previous year. Yet demand fundamentals remain robust, supported by return-to-office
    momentum and a weaker sales market as those who may have thought about buying over the past year put decisions on hold due to higher mortgage rates.</p>
<h2>Greenwich Dominates Q2 Performance with Strongest Quarterly and Annual Growth</h2>
<p>Quarterly rental growth across JLL offices strengthened in Q2 2026, with average growth reaching 1%. Greenwich emerged as the top performer with rents rising 2.9% over the quarter. Within Greenwich, the Blackheath sub-office posted the highest gain at
    7.6%.
</p>
<p>The City followed with 2.7% quarterly growth, driven by its EC1 sub-office which showed a notable 4.8% jump this quarter as activity picked up for the usual summer season. Canary Wharf was the only declining market, while Kew remained flat and Wood Green
    showed minimal movement (+0.4%). Other offices reported moderate growth as the Renters' Rights Act continues to drive private landlord exits, with institutional Build-to-Rent operators gaining market share as this transition unfolds.</p>
<p>Comparing current market performance with Q2 2023 reveals we&rsquo;re in a softer growth environment now. Three years ago, the Help to Buy policy had ended for all completions and the Building Safety Act (Gateway 2 and 3) was introduced for high-risk
    buildings over 18m tall. Back then, average quarterly rental growth across all offices stood at 2.3%, notably higher than this quarter's 1% average. All offices reported quarterly growth ranging between 1.4% and 3.7% in Q2 2023, compared to this quarter's
    -2.1% to 2.9% range, highlighting the moderating effect of current regulatory pressures on rental growth momentum.</p>

<iframe src="https://flo.uri.sh/visualisation/29636830/embed" title="Interactive or visual content" class="flourish-embed-iframe" frameborder="0" scrolling="no" style="width:100%;height:430px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe>
<p>&nbsp;</p>
<p>Annual growth shows all offices reporting positive performance, with Greenwich recording the highest at 6.4%, its strongest increase since Q2 2024, when it reached 7.5%. The City followed with 3.6%, showing notable improvement after three quarters hovering
    around 1% annual growth. Finsbury Park and Canary Wharf remained below 1% growth. Remaining offices showed gains between 1.8% and 2.7%. Beyond legislative pressures, these varying performances reflect what each area offers through supply, local amenities
    and transport links that shape tenant demand across different locations year-on-year.</p>
<h2>Long-Term Growth Continues Upward Trajectory with Nine Elms Leading this quarter</h2>
<p>Five-year rental growth across JLL offices remain strong at 43.5% in Q2 2026, higher than last quarter average of 41.9</p>

<style>
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<div style="overflow-x:auto;">
    <table cellspacing="0" cellpadding="0" border="1">
        <tbody>
            

            <tr>
                <td><strong>Offices</strong></td>
                <td><strong>5 year Growth</strong></td>
            </tr>
            <tr>
                <td>Nine Elms</td>
                <td>54.6%</td>
            </tr>
            <tr>
                <td>City</td>
                <td>51.0%</td>
            </tr>
            <tr>
                <td>Canary Wharf</td>
                <td>50.3%</td>
            </tr>
            <tr>
                <td>Greenwich</td>
                <td>46.9%</td>
            </tr>
            <tr>
                <td>Wood Green</td>
                <td>43.4%</td>
            </tr>
            <tr>
                <td>Finsbury Park</td>
                <td>38.7%</td>
            </tr>
            <tr>
                <td>Kew</td>
                <td>31.7%</td>
            </tr>
            <tr>
                <td>Stratford</td>
                <td>31.4%</td>
            </tr>
        </tbody>
    </table>
</div>
<p><sup>Source: JLL Research, 2026</sup></p>
<p>Nine Elms leads five-year growth at 54.6% growth this quarter, maintaining its momentum over the last eleven quarters followed by City and Canary Wharf. The Bank of England held the Bank Rate at 3.75% in June, higher than pre-2021 levels. More first-time
    buyers and home movers are delaying purchases, while relying on renting, driving sustained demand and upward rental pressure across London's markets.</p>
<h2>Market Sentiments Point to Easing Applicant Numbers and Rising Landlord Engagement</h2><iframe src="https://flo.uri.sh/visualisation/29623718/embed" title="Interactive or visual content" class="flourish-embed-iframe" frameborder="0" scrolling="no" style="width:100%;height:368px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe>
<p>&nbsp;</p>
<p>The rental market is telling a nuanced story across four key indicators, with the Renters&rsquo; Rights Act reshaping traditional patterns. Landlord instructions have notably increased across seven offices over the last quarter. This surge in stock on
    the market is likely to contain rental growth to moderate levels over the summer as tenants have greater choice. Days on market have extended across five offices in Q2 as new tenants take time to weigh options before committing.</p>
<p>New applicant registrations show easing momentum, with six of eight offices reporting a decrease over the last three months. Renewals have also increased, with seven offices reporting growth over the quarter as existing tenants priorities stability. Despite
    short‑term market adjustments around the Renter&rsquo;s Rights Act, summer activity is beginning to pick up in line with traditional seasonal patterns, indicating early signs of recalibration as the market adapts to the new regulatory landscape.</p>

London Rental Market Q2 2026: Regulatory Pressures Reshape Landscape

residential-roundup-manchester-2

https://res.cloudinary.com/jll-global-olm-np/image/upload/v1783582572/resi/gb/cms/News/Images/jll-rental-index-q2-2026.jpg

<h3 class="featuredProperties__title"><span class="featuredProperties__title-featured typography-hero">Featured </span><span class="featuredProperties__title-project typography-hero"> properties </span></h3>

<h3 class="featuredProperties__title"><span class="featuredProperties__title-featured typography-hero">Featured </span><span class="featuredProperties__title-project typography-hero"> developments </span></h3>

<h3 class="featuredProperties__title"><span class="featuredProperties__title-featured typography-hero">Featured </span><span class="featuredProperties__title-project typography-hero"> resales</span></h3>

<h3 class="featuredProperties__title"><span class="featuredProperties__title-featured typography-hero">Featured </span><span class="featuredProperties__title-project typography-hero"> developments</span></h3>

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[[options]]
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[[options]]
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Rent - Options

Options

There's the conventional way of doing things. And then, there's the JLL way. A more innovative, intelligent, and human way. Find out how you can SEE A BRIGHTER WAY with JLL.

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<p><strong>PRIVACY NOTICE</strong></p>
<p>Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.</p>
<p>Generally the personal information we collect from you are for the purposes of dealing with your enquiry.</p>
<p>We endeavor to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our <a href="https://www.jll.co.uk/en/privacy-statement" target="_blank">privacy statement</a>.</p>

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General Enquiry(DEPRECATED)

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Arrange a viewing

<p>PRIVACY NOTICE</p>
<p>Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.</p>
<p>Generally the personal information we collect from you are for the purposes of dealing with your enquiry.</p>
<p>We endeavor to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our&nbsp;<a href="https://www.jll.co.uk/en/privacy-statement" target="_blank">privacy statement</a>.</p>

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