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There has been a 32% drop in rental demand across London in September compared to August 2025, reflecting the usual seasonal slowdown following the end of summer, new data from Foxtons shows.
The decline aligns with the close of school holidays and the start of the academic year, when application volumes typically ease.
Year-on-year, applicant demand was 7% lower than in September 2024. However, overall levels remain steady, supported by strong underlying demand for rental homes across the capital.
Rental supply has stayed robust in 2025, with every month since March recording higher new listing volumes than the same period in 2024. While new listings dipped 6% between August and September 2025, they were still higher than September last year. Supply is up 11% year-to-date compared with 2024.
Average rents rose 3% in September to nearly £600 per week—marking the highest average for the month in four years. Year-to-date, rents are 2% higher than in 2024, with increases across all London regions except North London.
Market competition, measured by the number of renters per new instruction, dropped 38.6% from August to September—falling from over 20 applicants per property to 13. This shift suggests improved choice for tenants as supply increases.
Tenants spent an average of 98% of their registered budget in September, up from 97% in August. While 63% of renters secured properties below budget, 30% paid over their initial limit—indicating ongoing competition for well-located or high-quality homes.
Sarah Tonkinson, managing director of Institutional PRS and Build to Rent, said: “The London lettings market in September reflected expected seasonal moderation in applicant demand, yet rental values remained resilient, with average rents reaching a four-year high.
“Elevated applicant budgets and sustained supply growth point to a stabilising market environment for institutional investors.
“As we approach 2026, the phased implementation of the Renters’ Reform Act, will introduce structural changes to the private rental sector. These developments may influence build-to-rent strategies and long-term asset planning, as tenants demand more professional management and long-term security in the tenancy.”
Foxtons year-to-date key market indicators
| Supply
New Instructions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | 0% | -7% |
| Central | -4% | -1% |
| East | 20% | -6% |
| North | -8% | -2% |
| South | -3% | -13% |
| West | -4% | -18% |
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