London rents near £2,300 as international tenant base drives demand for guarantor solutions
The latest research from Zero Deposit has found that average rents in London have risen to £2,294 per month, almost 50% higher than the UK average, reinforcing the capital's position as the most expensive rental market in the country and driving increased demand for alternative guarantor solutions.
The research analysed average monthly rental values across London and the wider UK between May 2024 and May 2026 (latest available)*.
According to the findings, London rents have increased by almost 10% (9.9%) in the two years since May 2024, rising from an average of £2,088 to £2,294. Over the same period, UK average rents have risen from £1,252 to £1,383. This 10.5% increase is greater than the capital's, but London rents remain almost 50% (49.6%) higher than the national average.
This persistent gap in absolute rental costs continues to place London in a distinct category within the UK rental market, and this affordability pressure is being further shaped by the structure of London's tenant base.
Internal tenant demographic data from Foxtons* shows that an estimated 63% of its tenants are from overseas, highlighting the size of the capital's international rental market and the prevalence of tenants who may not have established UK-based financial references or access to a traditional guarantor.
For a major city like London, a diverse rental market is incredibly valuable and should be nurtured, which is why it's so important to ensure that there are guarantor products available to increase market accessibility for all demographics.
The combination of a diverse market and high rent values means demand for alternative forms of rental security is strong, even among tenants who are financially able to easily afford rent, but have limited rental history in the UK. That's why alternative guarantor solutions such as Guarantor+ are becoming more widely used as a way of supporting tenancy applications without sacrificing protection for landlords and agents.
In response to this demand, Foxtons, London's leading lettings agent, has partnered with Zero Deposit to make Guarantor+ available to its tenants, providing an additional route for applicants who may otherwise not meet traditional guarantor requirements in a highly competitive rental market. To date, over 25% of total available properties across letting agents and BTR operators are available with Guarantor+*.
Sam Reynolds, CEO of Zero Deposit, commented:
"London is unlike any other rental market in the UK. Rents are significantly higher than the national average, competition for homes is intense, and a large proportion of tenants are relocating from overseas.
In that environment, it is increasingly common for renters to be financially capable of affording a property, but unable to provide a traditional UK-based guarantor. That can create unnecessary friction at the point of application, even when demand for housing is strong.
We are seeing this reflected in adoption patterns, with over 77% of tenants in London selecting our product, Guarantor+, when given the option. It highlights just how pronounced these pressures are in the capital*.
As the rental market continues to evolve, particularly in cities with high levels of international mobility, guarantor products such as ours are playing an important role in helping tenants secure homes quickly while still giving landlords and agents the protection they need. What's most important now is to ensure that a guarantor product is right for the tenant and landlord, giving them genuine, long-term security, regulatory protection and fair value.
Our partnership with Foxtons reflects a major market shift, making Guarantor+ more widely available to tenants across one of the UK's most dynamic lettings markets."
Gareth Atkins, Foxtons Managing Director of Lettings at Foxtons, comments:
"London remains one of the most competitive rental markets in the country, but the diversity of today's tenant base means the ability to connect landlords with a broader pool of suitable tenants quickly and efficiently has become increasingly important.
For landlords, lengthy void periods can have a significant impact on returns, particularly against a backdrop of rising costs and ongoing regulatory change. Every day a property sits empty represents lost income, which is why reducing friction in the lettings process has never been more important.
At the same time, many prospective tenants who can comfortably afford their rent may not meet traditional referencing criteria. This is particularly common among international renters, students and the self-employed - groups that make up an important part of London's rental market.
The industry needs solutions that reflect the realities of today's tenant base. By providing landlords with greater confidence and enabling more prospective renters to access homes, products such as Guarantor+ can help keep tenancies moving, reduce unnecessary delays and support stronger occupancy levels.
As London's tenant population continues to evolve, flexibility and access will be increasingly important. Landlords who can embrace solutions that broaden their reach to quality tenants while maintaining a smooth and secure lettings process will be best placed to minimise voids, maximise returns and benefit from the depth and diversity of demand across the capital."
