London rental prices increased by 3.7% year-on-year in May 2026, signalling a potential recovery in the capital’s lettings market following sharp declines earlier this year, according to the latest data from Hello Neighbour.

The increase marks a significant turnaround from March and April, when average rents fell by 7.6% and 10.9% respectively. The latest figures suggest the market may be finding a more stable footing as it heads into the summer months.

Demand also strengthened during May, with enquiries per property rising to 37, up from 29 in April and the highest level recorded so far in 2026. While still below the 52 enquiries per property seen in May 2024, demand is now approaching levels recorded a year ago, when the figure stood at 39.

Richard Jenkins, CEO and Co-Founder of Hello Neighbour, said the figures point to a delayed spring recovery after a subdued start to the year.

The rebound comes despite wider uncertainty in the rental market following the introduction of the Renters’ Rights Act and ongoing affordability pressures facing tenants.

While London rents remain considerably higher than elsewhere in the UK, the latest figures suggest tenant demand remains resilient. According to the latest ONS data, rental inflation in London stood at 2% in the year to April, the lowest of any English region.