The London rental market showed signs of renewed momentum in May, with applicant registrations rising 35% month-on-month following a subdued April.
Despite the seasonal bounce, demand remains cautious, with year-to-date applicant volumes still 5% below 2024 levels.
Regional variation was marked, with Central London outperforming 2024 levels, while South and West London recorded year-to-date declines of 18% and 23%, respectively.
The supply of rental listings also strengthened, increasing 9% in May alone and bringing year-to-date growth to 9%. In total, around 40,000 new listings were recorded across the capital in May.
Market competitiveness also climbed, with 14.15 new applicants per new instruction, a 14% increase from April.
The most notable rises in competitiveness were seen in Central London, North London and Surrey, up 24.7%, 21.6% and 34.7% respectively.
Average applicant budgets grew by 1% month-on-month to over £550 per week, reflecting demand for central and larger homes, though affordability pressures remain.
Rents held steady in May at £589 per week, up 3% year-to-date, with West London, South London and Surrey showing the largest gains at 5%, 4% and 5% respectively.
Renters used 98% of their budgets on average in May, up 1% from April, yet 64% still secured homes under budget, suggesting improved market balance.
Gareth Atkins, managing director of lettings, said: “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.
“Central London continues to outperform, and 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.”
