The London lettings market cooled in September as the summer peak passed, with applicant registrations at Foxtons falling 21% from August.
Demand softens across the London lettings market
Registrations ran 11% below the same period in 2025 year to date, as demand stayed under last year’s elevated levels despite stronger activity earlier in the summer. West London was the exception. The year-to-date regional figures against last year show how uneven the picture is:
- Across all of London, new instructions fell 13%, and registrations fell 11%.
- Central London recorded falls of 20% in instructions and 16% in registrations.
- East London instructions dropped 11%, with registrations down 10%.
- North London saw instructions slip 6% and registrations fall 14%.
- South London instructions fell 9%, while registrations declined 11%.
- West London instructions fell 8%, but registrations rose 3%.
Competition for available properties eased too. New renters per new instruction fell 16% month on month to 20 after the August peak, although the ratio stayed 2% above a year earlier. The figures suggest demand and new instructions remained broadly in step over the year, even as activity cooled after the summer rush.
Supply held up better than demand. Market new listings ran 3% above the comparable period last year, and September volumes were virtually unchanged from August. Listings stayed resilient through the summer and into early autumn, even as registrations eased across the London lettings market.
Budgets and rents stay steady
Renter budgets changed only modestly, with spending close to planned limits. The average budget reached £562 a week, up 1% on the same period last year, although it slipped just over 1% from August to September in line with the general easing after the summer peak. Central London recorded the highest year-to-date budget at £632 a week, while west London was the only area where budgets fell below last year’s level.
Renters spent an average 98% of their stated budget year to date, up slightly on the comparable period last year, and the September figure reached 99%. Most renters secured a property for less than their stated budget, while a smaller share spent more than planned. With budgets and rents broadly stable, the index suggests renters found homes within the limits they had set.
Achieved rents changed little. The average rent achieved year to date rose almost 1% to £590 a week, and September reached £610, up 1% from August. That modest rise contrasts with the sharper fall in registrations, which suggests rents held firm without a broad acceleration in pricing across the London lettings market.
“London lettings is entering a new kind of market,” said Sarah Tonkinson, managing director institutional PRS and build to rent at Foxtons.
“Applicants are still moving, but they’re making more considered choices, so understanding what’s prompting a move and matching each property to the right audience really counts. There are 18 renters per instruction, up 2% year on year, and average budgets remain steady at £562 a week.”
“There’s plenty to build on: rents achieved are up 1% year on year, reaching £610 per week in September, and properties are letting at 98% of budget,” she added. “Strong marketing, a clear story and an excellent resident experience are what turn applicant interest into great results.”
