The 5 Rental Market Trends in East London for 2025
East London Rents Are Rising Faster Than Incomes
Regeneration Is Shaping New Rental Hotspots
Build to Rent Is Reshaping the Private Rental Sector
Private Landlords Are Exiting the Market
Affordability Challenges Are Changing Renter Behaviour
1. East London Rents Are Rising Faster Than Incomes
Rents across the East London rental market in 2025 have climbed quickly, outpacing national averages. Hackney, Barking and Dagenham, and Newham have seen some of the biggest jumps. Even though affordability is stretched, demand continues to rise and available properties are limited.
Here are the key reasons:
More students, young professionals and international renters are entering the market
New homes are not being built fast enough in popular boroughs
The gap between rents and incomes keeps growing
Many renters who moved out during the pandemic are returning
In Hackney, average rents have increased from around two thousand pounds in early 2024 to over two thousand and fifty pounds this year. While Barking and Dagenham are still more affordable, rents there are also rising as demand spreads outward.
Rental inflation means tenants have fewer choices. Wages are not keeping up, and the rent to salary ratio is getting worse. In high demand boroughs, one and two bedroom homes are being let faster than ever. This is creating clear London tenant pressure across younger age groups.
Why student and international demand is fuelling rents
The return of overseas professionals and university students is adding extra pressure. In areas like Stratford, Newham and Mile End, this added demand is pushing up prices and reducing availability.
What this means for renters: Act quickly in popular areas and keep an eye on monthly increases. Prices may keep rising as we move into late 2025.
Pro Tip:Use the ONS rent index monthly to track borough-level rental changes before committing.
Ehab Barrain
Managing Director at Barrain Estate Agents London
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2. Regeneration Is Shaping New Rental Hotspots
Across East London, regeneration projects are changing where people want to rent. Developments like East Bank in Stratford and Silvertown Quays are helping to transform lesser known postcodes.
Areas seeing growth include:
Stratford’s East Bank, popular for its culture and transport links
Barking Riverside, which is affordable and attractive to investors
Silvertown Quays in E16, boosted by transport and planning
Forest Gate and Custom House, which benefit from Crossrail access
These areas offer better homes, faster journeys, and stronger local services. As the Greater London Authority backs regeneration through infrastructure uplift, investment and planning gain, demand continues to follow.
Regeneration zones create rental heatmaps across the capital. The rental ripple effect spreads outwards from each major hub as postcode desirability shifts.
What this means for renters: If you’re looking for value, watch how prices shift in these areas. Boroughs with new transport links often see rising rents within months.
Need Help Finding Your Next East London Let?
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3. Build to Rent Is Reshaping the Private Rental Sector
Build to Rent homes are built for long term renting and usually run by large firms. These homes often include things like gyms, lounges and on site teams to manage issues.
In East London, these schemes are growing fast, especially in:
Stratford
East Ham
Around Ilford borders
Tenants are drawn to Build to Rent for:
Flexible contracts
Well maintained buildings
On site support teams
Private landlords, however, are finding it harder to compete with the service levels. In some places, rental yields are also being squeezed.
Build to Rent schemes support a different renter lifestyle. Managed blocks often suit those seeking long term lets with higher amenity standards and smoother tenancy flexibility.
How Build to Rent compares to traditional rentals
What this means for renters: If you want modern features and simple management, Build to Rent could be ideal. But it often comes with higher monthly costs.
Pro Tip: Flatshare platforms can help benchmark affordability in borderline zones like Ilford or East Ham.
Ehab Barrain
Managing Director at Barrain Estate Agents London
4. Private Landlords Are Exiting the Market
More landlords are choosing to leave the rental market. A mix of new rules, extra costs and growing workloads is behind this change.
Why landlords are leaving:
The Renters Reform Bill and end of Section 21 notices
Tougher energy efficiency rules
Higher tax bills from HMRC
General fatigue and stress
Some are selling their properties. Others are switching to short lets or houses in multiple occupation. Either way, this reduces the number of long term rentals available.
The Private Rented Sector is shrinking in some boroughs. As compliance costs rise, the appeal of letting property in East London is falling.
What this means for renters: Expect fewer listings in popular boroughs. If you’re renewing a tenancy, ask early about future plans.
5. Affordability Challenges Are Changing Renter Behaviour
Rising costs are forcing renters to rethink where and how they live. More people are choosing shared flats, moving further out, or settling for less space to stay within budget.
Trends we’re seeing:
Zones four and five are gaining interest
Flatshares are more common, even for older renters
Deposits and upfront costs remain a big hurdle
Value can still be found in:
Barking and Dagenham
East Ham
Parts of Ilford and Walthamstow
Many renters are using affordability index tools and flatshare platforms to find practical solutions. Cost of entry remains a challenge, but some renters are prioritising long term options with reasonable commute times.
What this means for renters: Be open to new locations and don’t rule out shared living. Look beyond zone numbers and think about what matters day to day.
FAQs
How much has rent gone up in East London in 2025?
In most boroughs, rents have increased by eight to fifteen percent since last year. Hackney and Newham have seen the sharpest rises. Zoopla and ONS data confirm strong rental inflation in areas close to Crossrail links and regeneration activity.
What is Build to Rent and how is it different?
Build to Rent refers to homes built for renters and managed by large firms. They often include extra features and smoother service but tend to cost more. These schemes appeal to tenants looking for amenity-led housing and consistent service.
Is East London still affordable for young professionals?
It depends on the area. Outer boroughs like Barking and East Ham are more accessible. Many younger renters are choosing flatshares or smaller spaces to stay local.
Will landlord reforms affect rental supply in London?
Yes. As more landlords leave or change strategy, fewer homes are available to long term renters. The effect is already visible in boroughs with high compliance burdens.
