If 2025 marked the end of the post-pandemic rental boom, 2026 will be the year that finally exposes it. Despite persistent commentary about “chronic undersupply” and “structural rental inflation”, Prime Central London is no longer a market where scarcity alone delivers pricing power. Tenants have adjusted. Landlords, in many cases, have not.
The reality is that demand in 2026 will remain present but decidedly conditional. At lower and mid price points, needs-based demand will continue to underpin activity. Above that, particularly in the £10,000 pcm and super-prime segments, tenants are increasingly sophisticated, patient and willing to walk away. They are benchmarking hard, negotiating confidently and, crucially, refusing to overpay for anything that is not genuinely best-in-class. The days of tenants absorbing tired finishes or slow management responses at premium rents are over. This, more nuance tenant demand, is manifesting in a reduction in the number of houses let vs last year. Lonres data evidences an 11% reduction in the number of houses let compared with the same period in 2024/5, whereas the number of flat lettings is broadly flat.
On the supply side, there is no meaningful rescue coming. While overall stock remains constrained, that constraint is being overstated and misunderstood. What the market actually lacks is high-quality, correctly priced rental product, not listings per se. In fact, there has been a 45% increase in the overall number of new listings on the Lonres platform over the last 12 months. Many landlords are still anchored to 2023–24 pricing assumptions that simply do not clear in today’s market. In 2026, that disconnect will increasingly manifest as longer voids, price reductions and “stale” listings, particularly at the upper end.
In value terms, overall rental values were under pressure in 2025 with a -3.3% annual change in the Lonres lettings index for PCL (-2.9% for Prime London postcodes). This year the signs are of flat headline rents but widening dispersion. There is no credible case for broad-based rental growth in Prime Central London in 2026, albeit that we anticipate the usual peaks of tenant demand which will help support values in those busier months. Instead, the market will reward execution and punish complacency. Well-prepared, realistically priced homes will let cleanly and hold value. Average or compromised stock will not, regardless of postcode. For landlords, the message is blunt but necessary: pricing discipline and proper stewardship now matter more than scarcity. The market has moved on. Those who fail to move with it will feel the cost.
Against this backdrop, navigating the Prime Central London lettings market in 2026 will require more than optimistic pricing and generic advice. It will demand local judgement, realism and hands-on execution. Maskells has operated at the heart of Chelsea and Prime Central London for decades, advising private, institutional and long-standing family landlords through multiple market cycles. Our focus is not volume or headline claims, but outcomes: pricing accurately, preparing properly and managing decisively. In a market where dispersion is widening and mistakes are increasingly expensive, that depth of experience and on-the-ground perspective is precisely what allows our clients to outperform.
We are here to help you navigate these conditions and deliver strong, measurable results - by combining clear market insight with proactive execution, we ensure your property is positioned and managed to achieve the best possible outcome.