Foxtons has reported signs of a more balanced rental market in London, with supply improving and demand moderating amid broader economic uncertainty. The latest figures from the agency show a 5% month-on-month rise in new listings during April, helping ease pressure in some of the capital’s most overheated areas.
Applicant registrations were down 3% on the previous month and 5% year to date compared to 2024. While Central London continues to outperform, areas such as South and West London have seen sharper declines in demand. The number of applicants per instruction dropped to 12.4 in April, down 1.7% from March and 14.3% year on year, further reflecting a shift towards less intense competition.
Average rents increased by 3% year on year to £589 per week, supported by steady demand and stronger stock levels. South and West London saw the strongest regional rent growth, each recording a 4% rise. Despite the general upward trend, Foxtons notes that renters are showing more restraint, spending 96% of their budgets on average – a slight decline on previous months, with 64% of applicants now securing homes below their maximum budget.
Gareth Atkins, managing director of lettings at Foxtons, said: “April’s rental market activity reflects a more balanced landscape for renters and landlords alike. 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.
“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.”
Average applicant budgets rose 2% year on year, indicating continued confidence among renters. Demand for one-, two- and three-bedroom properties increased, while studio budgets dropped 15%, pointing to a preference for more spacious homes.
Foxtons data shows a varied regional picture in both supply and demand. Central London saw a 7% rise in renter registrations despite a slight fall in supply, while South and West London experienced significant drops in demand of 19% and 24% respectively.
