"As expected, August saw a seasonal dip in applicant demand, but the market remains resilient with strong stock levels and demand to match"
- Gareth Atkins - Foxtons
Rental demand dropped 11% in August compared with July 2025, reflecting the usual slowdown at the end of summer.
Supply remained robust, with almost 40,000 new listings recorded during the month, surpassing August 2024 levels. Average weekly rents eased slightly to £576, down 5% from July’s peak.
New data from Foxtons, London’s largest lettings agent, shows rental demand was 11% lower in August than in July 2025, in line with seasonal trends as school holidays ended and university students returned. Compared with August 2024, registrations were down 13%, leaving year-to-date figures 7% below last year. Central London performed in line with 2024, while south and west London experienced the steepest year-on-year declines.
Supply trends contrast with the demand dip. August 2025 listings exceeded August 2024 despite the seasonal cooling from July, with nearly 40,000 new listings recorded. Year to date, supply is up 11% compared with the same period in 2024, reflecting a steady flow of stock into the rental market.
Market competitiveness, measured by new renters per new instruction, increased 10.6% month on month in August. This was driven by both fewer applicants and fewer listings compared to July’s peak. The improvement helped narrow the gap with last year, leaving the year-to-date figure just 4.1% behind 2024.
Average weekly rents in August fell 5% from July’s seasonal high, reaching £576. However, rents remain stronger than last year, with year-to-date figures showing a 3% rise. Regional growth has been steady in 2025, although north London recorded a slight year-on-year decline.
Renter budgets also held up. August showed only a 1% drop from July, and budgets remained higher than in August 2024. Year-to-date growth was seen across all regions except north London, which recorded a marginal fall. Tenants spent an average of 97% of their stated budget in August, compared with 99% in July. On a year-to-date basis, spending is broadly consistent with 2024, with only a 1% reduction.
“As expected, August saw a seasonal dip in applicant demand, but the market remains resilient with strong stock levels and demand to match,” said Gareth Atkins, managing director of lettings. “The increase in new listings is giving tenants more choice, while landlords continue to benefit from solid year-to-date growth. As we move into autumn, maintaining high-quality properties that are competitively priced will be key in a market where tenants are increasingly prioritising quality.”
