"While the coming spring market should bring an uptick in demand, the substantial growth in supply is contributing to increased competition among available properties"
- Gareth Atkins - Foxtons
The latest data released by Foxtons has shown that the London Lettings market appears to be stabilising, offering a welcome sense of predictability for both renters and landlords.
Supply and demand are well-balanced, making the search for a home more manageable and reducing the urgency that defined previous years. While different parts of London are seeing shifts in activity, these reflect evolving renter preferences rather than major market changes. With affordability and competition settling into a more sustainable rhythm, the year ahead looks set to offer a steady and reliable rental landscape.
This January, whilst demand fell 3% from last January, it increased 83% from December 2024. Central London exhibited a significant 15% increase in demand from last January, followed closely by North London’s 13% increase. West London had a 15% decrease, reflecting shifting preferences across the capital.
There was a slight 2% reduction in new renters per new instruction in January 2025 compared to January 2024. North London's year-on-year renters per new instructions increased by 25%, the highest of any London area. This is also true when comparing against December 2024, with North London seeing a 22% rise in renters per instruction.
Applicant budgets increased by 3% this January compared to last January and to December 2024. Budgets for studio have fallen by 17% from last January. In South London, budgets increased 5% year on year, the highest of any London area.
The volume of listings coming to market declined just 5% from last January. However, compared to December 2024, there was a 51% increase. Westminster had the largest growth in new listings at 11%, the highest of any London borough.
The average rent in January increased by 2% from January 2024. Central and South London both saw a 5% year-on-year increase in rent.
“Foxtons’ analysis of new listings in the London rental market reveals a slight increase from this time last year, but a 55% increase in available properties compared to the same period of 2023 – highlighting a notable expansion in supply," explained Gareth Atkins, Managing Director of Lettings, "While the coming spring market should bring an uptick in demand, the substantial growth in supply is contributing to increased competition among available properties,"
He concluded, "The London Lettings market is therefore looking as if it will stabilise as we move into the spring offering predictability for both renters and landlords.”
