Rental availability in London has declined following the introduction of the Renters’ Rights Act, according to new research from SpareRoom.
The data highlights a growing divide across the capital, with some areas experiencing tighter rental supply while others continue to offer more choice for tenants.
West London remains the most expensive part of the capital, with average rents reaching £1,043 per month. It also has the lowest number of available rooms, suggesting that limited supply is contributing to higher rental costs.
Meanwhile, east London presents a contrasting picture. The area has the highest number of available rental rooms while also offering some of the most affordable rents in the capital.
Rental Supply Declines as New Rules Take Effect
SpareRoom’s figures show that during the second quarter of 2026, when the Renters’ Rights Act came into force, flatshare availability in inner London dropped by 5%.
This marked the end of a three-year period of rising rental supply in the area.
Supply also declined in north-west and south-west London, with both regions recording almost 10% fewer available rooms compared with the previous year.
However, rental availability remained more stable in east London, where supply levels were broadly unchanged compared with Q2 2025.
Despite being among the cheaper areas of London, east and north London continue to provide more affordable options for renters. Average rents currently stand at around £933 per month in east London and £937 in north London.
East London also offered more than double the number of available rooms compared with north London during the second quarter.
Limited Supply Could Push Rents Higher
Matt Hutchinson, director at SpareRoom, said the connection between rental supply and affordability is clear.
He explained that areas with the greatest availability tend to have lower rents, while locations where supply is restricted are likely to see rental prices increase more quickly.
He said: “Where supply is most squeezed, rents will rise faster. It’s a good reminder of what needs to happen if renters are to see any meaningful decreases in housing costs.”
Mr Hutchinson added that the wider issue is that rental supply is declining across the capital, although east London has so far avoided the same level of pressure seen elsewhere.
He warned that the government faces a difficult challenge in reducing living costs without improving the availability of rental homes.
Rental Costs Continue to Rise Across the UK
The findings come as separate figures from the Office for National Statistics (ONS) show that private rents across the UK increased by 3.3% in the year to June.
The average monthly private rent reached £1,388, highlighting the continued pressure facing tenants as demand remains high and rental supply remains limited.
With the Renters’ Rights Act now in place, landlords and tenants will continue to monitor how the new regulations affect the availability and affordability of rental properties across London and the wider UK.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property