Nick Millican Weighs in on Higher London Rents

Real estate industry observers such as Nick Millican, now say that rents in London may rise at twice the rate of house prices through the end of 2026. The city’s property market is predicted to recover faster than the greater U.K. landscape but upward pressure on the rental sector shows no sign of slowing down.

Noted real estate expert Nick Millican said that the capital’s housing price average is expected to outperform all other regions for the first time in about eight years. That translates to 5% annual growth predicted for Q4 of 2025 and 11.6% growth across four years into 2026. 

Furthermore, London is expected to see smaller-than-average declines in house prices in the final quarter of 2023. That number comes in as minue-2.5% Nick Millican said the reason is that London has been lower than other regions during the previous five years. That spells “less churn” to detract from prices.

Another prediction made by industry analysts is that lower mortgage rates will produce a bounce back in London first in 2025. That’s because a greater share of homeowners own a mortgage and tend to borrow on their income in more-than-average multiples of that income (Twitter). 

Mortgage rates are expected to average 4.75% for a two-year fixed instrument. Nick Millican said he is keeping an eye on political factors, especially the general election at the conclusion of 2024. That could strongly affect activity in prime central London. There’s little debate, however, that rents will remain the highest in the nation in London with an increase of 25% forecast in the same period.