London’s rental sector is full of opportunity for both landlords and tenants, according to Foxtons, which reports a huge explosion in tenancy applications.
Its latest Lettings Market Index shows that applicant registrations surged by 35% in May, following April’s unexpected dip, while there was also a significant rise in market listings, up 9% month-on-month. Approximately 40,000 new rental listings were recorded in May across the capital.
However, year-to-date applicant volumes remain 5% below 2024 levels, says Foxtons, suggesting that renters are being more cautious. Regionally, Central London continues to outperform, while South and West London have seen notable declines of 18% and 23%, respectively.
Market competitiveness increased in May, with 14 new renters per new instruction, a 14% increase from April. While this suggests rising competition, the year-to-date figure is still 23% lower than last year.
Average rent in May held steady at £589 per week, in line with April, reports Foxtons. Year-to-date, rental values are up 3% versus 2024, indicating that landlords are beginning to recover margins, although it predicts further increases might be constrained by affordability.
Average applicant budgets rose 1% month-on-month, now at above £550 per week, with growth underpinned by renewed interest in central locations and larger format homes.
Renters spent an average of 98% of their stated budgets in May, up 1% from April. Despite the increase, 64% still secured properties under budget, reflecting improved supply and a more balanced market.
Gareth Atkins (main image), managing director of lettings, says London’s rental market came back with real force in May. “We saw a 35% surge in applicant demand alongside sustained growth in supply, a clear sign of a market gaining strength and momentum,” he explains.
“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.”
Pic credit: Foxtons
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