Should You Stay or Should You Move in the Current Rental Market?

The London rental market is shifting, presenting tenants with an unusual dilemma: should they stay put and renew their lease or move to a new home for a better deal? Recent data suggests that while rental prices for new lets are declining in some areas, renewal rents continue to rise—making the decision more complex for tenants.

The London rental market is shifting in ways that could leave tenants questioning their next move, literally. With renewal rents climbing while new let prices drop in some areas, many renters are facing a tough decision: stay put and pay more, or move and potentially save?

The stakes are high. The cost of living is already squeezing household budgets, and now, rental trends are throwing another curveball. If you’re up for renewal, you might feel the frustration of watching new tenants secure better deals while your landlord proposes an increase. But before you make any big moves, let’s break it down.

What Do The Latest Rental Figures Show?

New lets are getting cheaper—if you’re in the right place.

• Greater London: New lets now average £2,256 per month, a -2.8% decrease year-on-year.
• Inner London: The biggest drops are here, with new lets averaging £2,647 per month, down 5.1%.
• Outer London: Rents remain steadier, with new lets averaging £1,969 per month, down just 0.6%.

But here’s the catch…

Renewal rents are climbing.

• Greater London: Renewals now average £2,165 per month, up 5.9% year-on-year.
• Inner London: Renewals have risen 4.6%, now averaging £2,743 per month—meaning some tenants are paying £96 more than new movers.
• Outer London: The biggest increases are here, with renewals up 7.4%, averaging £1,840 per month.

Should You Stay or Move?

Feeling settled? Or eyeing a fresh start? Here’s what you need to consider:

1. Check Your Local Market – If you’re in Inner London, where new let rents are falling, you might save money by moving. But in Outer London, where renewal rents are still lower than new lets, staying put could be your best bet.
2. Negotiate with Your Landlord – Landlords don’t want empty properties—especially as rental demand stabilises. If your renewal offer is creeping up, push back. Highlight falling new let prices in your area and see if they’ll meet you in the middle.
3. Factor in Moving Costs – Yes, new lets might be cheaper, but moving isn’t free. Consider deposits, agency fees, removals, and potential furnishing costs. The savings need to be worth the hassle.
4. Weigh Stability vs. Savings –  Are you happy in your current home? Do you love your neighbourhood? Stability has value too. If moving would disrupt your life, a moderate rent increase might still be better than the upheaval of relocating.

The Bottom Line