Sunday, 31 August 2025

South London rents: cooling growth, rising pressure — what's your next move?

**South London rents: cooling growth, rising pressure — what's your next move?** Rent inflation has cooled to 2.7%. Relief? Not so fast — affordability is still biting, and that shapes pricing power, yields and exit strategies. Here's what jumped out of the latest ONS/Zoopla/Property118 round‑up — and why it matters on our side of the river: 1) Zoopla says rent inflation is 2.7%, the lowest since July 2021. Why it matters: In South London, you can't bank on big year‑on‑year uplifts to cover higher borrowing costs. Landlords in Lambeth, Wandsworth, Croydon and Lewisham need to prioritise retention, not headline rents. Price for low voids and quality tenants. 2) ONS uses 30% of income as the affordability yardstick across 2016–2024. Why it matters: Many tenants here are already near that line. Push beyond it and you risk arrears or longer voids — especially for one‑beds and studios in Zone 2/3. Family lets with space and decent EPCs still clear, but the ceiling is firmer. 3) Richard Don

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