"As we move into summer, the lettings landscape is vibrant, competitive, and full of opportunity for both landlords and tenants."
- Gareth Atkins - Foxtons
Applicant registrations and property listings rose in May, indicating stronger seasonal demand across London’s rental sector, although regional variation and affordability remain key factors shaping the market.
Applicant registrations increased by 35% month-on-month, reversing the dip observed in April and highlighting a return of seasonal momentum. Despite this rise, applicant numbers remain 5% lower year-to-date compared with 2024, suggesting that some renters remain cautious. Central London was the only region to show growth compared with last year, while South and West London reported notable year-to-date declines of 18% and 23%, respectively.
“London’s rental market came back with real force in May,” said Gareth Atkins, managing director of lettings. “We saw a 35% surge in applicant demand alongside sustained growth in supply, a clear sign of a market gaining strength and momentum. Central London continues to outperform, and renters are re-engaging with pace and purpose. As we move into summer, the lettings landscape is vibrant, competitive, and full of opportunity for both landlords and tenants.”
Rental market competitiveness also grew, with an average of 14.15 new renters per new instruction in May, marking a 14% increase from April. While this points to growing demand, year-to-date figures are still 23.7% below 2024, underscoring a broader trend toward reduced urgency. Some areas saw sharper increases in competitiveness: Central London rose 24.7%, North London climbed 21.6%, and Surrey saw a 34.7% jump.
Average applicant budgets rose 1% month-on-month, now exceeding £550 per week. The uptick is driven by renewed interest in central areas and larger homes, although affordability constraints continue to affect more price-sensitive boroughs.
Rental supply continued to improve, with market listings increasing by 9% month-on-month, echoing the positive trend observed in March and April. Year-to-date, the number of new listings is also up 9% compared with 2024, reflecting greater market liquidity and more choice for renters. Approximately 40,000 new rental listings were recorded across London in May.
Average weekly rents remained stable at £589, the same as April. So far this year, average rents have risen 3% compared with 2024. Increases have been most notable in West London (up 5%), South London (up 4%) and Surrey (up 5%). These figures suggest that landlords are seeing some recovery in yields, although affordability may limit further gains.
In May, renters spent an average of 98% of their stated budgets, a 1% increase from the previous month. However, 64% of renters still secured properties below their budget, pointing to improved supply and a more balanced market environment.
