"A 5% rise in new property listings has helped ease some of the pressure seen in recent years, giving renters greater choice and more room to negotiate"
- Gareth Atkins - Foxtons
A rise in property listings is helping to rebalance the London rental market, with signs of easing competition and steadier pricing, according to new figures from Foxtons.
The lettings agency reported a 5% increase in new listings during April, contributing to a 9% rise in market supply compared to the same period in 2024. The uptick in availability appears to be softening pressure in previously overheated areas and allowing renters more room to negotiate.
Applicant activity in April fell short of seasonal expectations. There was a 3% month-on-month drop in applicant registrations, contrasting with typical spring trends. Year-to-date figures show applicant numbers are 5% lower than in 2024, suggesting a moderation in demand, though activity remains steady overall. Central London stood out as an exception, where demand outpaced last year, while South and West London experienced more pronounced declines.
The number of applicants per instruction declined to 12.4 in April, down 1.7% from March. This figure is 14.3% lower than it was at the same point last year. The largest decreases were recorded in East and South London, where high competition has previously driven strong applicant-per-property ratios.
Renters, on average, spent 96% of their budgets in April – a drop from earlier months and an indicator of reduced urgency and increased leverage for tenants. Foxtons noted that 64% of applicants are now securing homes below their registered budgets. Over the year to date, the proportion of budget spent has declined by 1%, reinforcing the view of a more balanced market environment.
Despite the cooler pace of demand, average rents in April rose by 3% year on year, reaching £589 per week. This increase is underpinned by solid demand and more robust levels of available housing stock. South and West London led the way in rental growth, each posting 4% annual increases.
Applicant budgets grew by 2% in April compared to the previous year, reflecting continued willingness among renters to pay for quality properties. While most regions saw modest gains, budgets in Central London remained flat. Budget allocations for studio flats fell by 15%, suggesting a shift in preferences toward larger living spaces. In contrast, budgets for one-, two- and three-bedroom homes all increased.
Foxtons highlighted that the increased activity this April compares with an unusually quiet month last year. The current figures point to a return to more typical market conditions, with signs of rebalancing between supply and demand across the capital.
“April’s rental market activity reflects a more balanced landscape for renters and landlords alike," explained Foxtons' managing director of lettings, Gareth Atkins. "A 5% rise in new property listings has helped ease some of the pressure seen in recent years, giving renters greater choice and more room to negotiate."
He added, "The slight slowdown in applicant registrations, down 3% month on month, also indicates a shift in pace, which is typical of a market moving toward greater stability. This trend, alongside a dip in the average percentage of budget spent, shows the market is becoming less competitive and more accessible for many.”
