"Increased stock levels and resilient budgets suggest a more balanced market is emerging"
- Gareth Atkins - Foxtons
Rental demand in London fell by 32% in September 2025 compared with August, reflecting the usual seasonal slowdown at the end of summer. Foxtons, the city’s largest lettings agent, attributes the dip to the end of school holidays and the return of university students, which typically reduces applications.
Despite this, supply remains robust. Listings in September 2025 exceeded September 2024 levels, and every month since March 2025 has recorded higher volumes than the same month in the previous year. Year-to-date, new listings are up 11% compared with 2024, indicating a broad improvement in the availability of rental properties. September’s supply was slightly lower than August, down 6% month-on-month, but the overall trend points to a more balanced market.
Rents continue to rise, with average weekly rents reaching £600 in September 2025, marking the highest September figure in four years. This represents a 3% increase compared with August 2025 and a 2% rise year-to-date compared with 2024. Rent growth has been observed across all London regions except North London, reflecting strong underlying demand.
Market competitiveness, measured by the number of renters per available property, fell by 38.6% month-on-month, from over 20 renters per property in August to 13 in September. Prospective tenants now have greater choice, although 30% of renters still had to exceed their budget to secure their preferred home. On average, tenants spent 98% of their registered budget, with 63% of renters securing properties under budget.
“September saw a seasonal dip in applicant demand, but rental values remained strong, with average rents reaching a four-year high,” said Gareth Atkins, managing director of Lettings. “Increased stock levels and resilient budgets suggest a more balanced market is emerging. Looking ahead, the Renters’ Rights Act, expected to begin implementation in 2026, will bring major changes, including the end of Section 21 evictions and a shift to rolling tenancies. These reforms are likely to reshape landlord-tenant relationships and highlight the value of working with a professional agent to get the right return on your rental investment.”
