The London lettings market reached its busiest point in four years last month, with almost 50,000 new rental listings recorded in July.
According to Foxtons, supply rose 4% from June and was 12% higher than July 2024, reflecting stronger landlord confidence and a return to more typical seasonal patterns.
Demand also surged, with new applicant registrations up 25% month on month and slightly higher than the same period last year.
Year-to-date, registrations are tracking just 3% lower than 2024, showing renewed resilience. Central London led the way with a 4% annual increase, while the South and West saw declines of 15% and 22% respectively.
Rental prices increased 1% in July to £596 per week, close to the 2023 market peak. Since April, rents have largely stabilised, absorbing new supply while still supporting modest growth.
The number of new renters per available property rose 21% to 18.5, highlighting intense competition despite easing year-to-date figures compared to last year.
Renter budgets reached an average of £554 per week so far this year, up 2% on 2024, with West London seeing the sharpest increase at 4%. In July, tenants spent an average of 99% of their stated budget, with 29% exceeding their limit to secure a property.
Gareth Atkins, managing director of lettings at Foxtons, said: “The London lettings market remained red hot in July.
“Despite a modest uptick in supply, applicant demand surged by 25% month-on-month, resulting in over 18 applicants per available property.
“This sustained pressure has driven rental prices upward in line with seasonal trends, and we expect this momentum to continue for the rest of the summer.”
