Rental demand in London fell sharply in August, with new renter registrations down 11% compared with July 2025, according to Foxtons.
The agency said the dip reflected the typical seasonal slowdown as school holidays end and university students return, with registrations also 13% lower than in August 2024.
Year-to-date, demand is 7% below last year, with the steepest declines in South and West London.
Despite reduced demand, supply remains strong, with nearly 40,000 new listings recorded in August, above the same month last year.
Year-to-date supply is up 11% compared with 2024 as landlords continue to bring properties to market.
Central London is performing in line with last year, while other regions show mixed trends, with East London the only area to record both supply and demand growth.
Market competitiveness, measured by new renters per new instruction, rose 10.6% month on month as both applicants and listings fell from July’s peak.
This narrowed the year-to-date gap with 2024 to 4.1%. Average rents eased back 5% from July’s seasonal high to £576 per week but remain 3% higher year to date compared with last year. North London was the only region to record a slight annual decline.
Renter budgets dipped 1% from July but remain higher than August 2024. Tenants spent 97% of their stated budgets in August, down from 99% in July, with overall spend broadly consistent with 2024.
Gareth Atkins, managing director of lettings, said: “As expected, August saw a seasonal dip in applicant demand but the market remains resilient with strong stock levels and demand to match.
“The increase in new listings is giving tenants more choice, while landlords continue to benefit from solid year-to-date growth.
“As we move into autumn, maintaining high-quality properties that are competitively priced will be key in a market where tenants are increasingly prioritising quality.”
