New data from Foxtons in London reveals that rental supply in October remained robust, continuing a strong trend throughout 2025. While listings dipped 7% month-on-month from September, volumes still exceeded October 2024 levels, with year-to-date new listings up 10%, highlighting sustained improvement in market supply.
Rental demand eased 33% in October, reflecting the usual seasonal slowdown ahead of Christmas. Year-to-date, applicant demand remains 7% lower than in 2024, though steady underlying demand continues to support the market, particularly across London’s South and West regions.
Average rents fell slightly to £575 per week in October, down 3% from September, consistent with seasonal patterns. Despite the dip, year-to-date rents are 2% higher than 2024, rising across all regions except North London, demonstrating the market’s resilience amid shifting demand.
Market competitiveness in October, measured by new renters per instruction, cooled notably by 28.9% month-on-month. New data shows the market has fallen from around 20 renters competing for each available property in August to nine in October meaning that prospective tenants now have a greater chance of signing a property.
Renter spending patterns in October closely mirrored those seen in September, with tenants spending an average of 99% of their registered budgets. Around 63% of renters secured properties below budget, while 30% needed to stretch above it. These figures reflect a still-competitive market, where most tenants are finding options within budget, though a significant share continue to pay a premium for their preferred homes.
Sarah Tonkinson, managing director of Institutional PRS and Build to Rent, said: “Our latest lettings data reflects expected seasonal moderation and while applicant demand has continued to be down 7% year-on-year, the resilience of rental values and budgets remain a positive indicator for Build to Rent developments. Notably, operators who have adjusted their pricing strategies are seeing strong uptake, underscoring the depth of demand in the market.
“The Renters’ Rights Act represents a major regulatory milestone for corporate developers, institutional landlords, and operators, making this the right time to review operational frameworks with trusted partners who have in-depth knowledge of the London market and the evolving regulatory landscape.”
