London’s lettings market continued to show signs of resilience in March, with new rental listings across the capital increasing by 14% compared to February, according to new data from Foxtons. The rise represents the strongest month-on-month uplift recorded so far in 2025.
Year-on-year, new supply was broadly stable, tracking just 1% above March 2024 levels – indicating that the market is stabilising following unusually high listing volumes seen early last year. While regional variation persists, the overall trend points to a steady flow of instructions and balanced conditions across most of London.
Average rents in March stood at £565 per week, reflecting a 2% annual increase and holding firm month-on-month. South London and Surrey recorded the highest year-on-year rental growth, with both regions seeing a 6% rise, driven largely by continued competition for family housing and larger properties.
Applicant registrations also rose 11% from February, in line with seasonal expectations. Compared with March 2024, demand was largely flat, down just 2%. Central London recorded the most significant uplift, with year-on-year growth in applicant numbers reinforcing sustained interest in core areas of the capital.
Competition per listing eased slightly, with an average of 12.6 applicants per rental instruction – a 4% decrease from February. However, year-to-date figures remain broadly in line with 2024, suggesting a more balanced market overall. East London saw increased applicant pressure, while competition declined more sharply in West London and Surrey.
Gareth Atkins, managing director of lettings at Foxtons, said: “The London lettings market is gaining momentum as we enter April, with March delivering a 14% surge in new listings – the largest uplift so far this year. Simultaneously, applicant registrations climbed 11%, reflecting strong seasonal interest and sustained confidence among renters. With more choice coming to the market, renters are well-positioned this spring. At the same time, the steady flow of listings is helping to keep conditions balanced across much of the capital, creating a more stable and competitive environment for everyone navigating the market.”
