Foxtons has reported a 32% month-on-month fall in rental demand across London in September 2025, in line with the seasonal slowdown that typically follows the end of the summer period.
The decline coincides with the close of school holidays and the return of university students, which traditionally reduce application volumes.
Year-to-date, applicant demand remains 7% lower than September 2024, though the agent said the market remains stable overall due to continued strong demand for rental accommodation in the capital.
Supply of new rental listings has remained consistently high throughout 2025, with every month since March recording more listings than the same period in 2024.
While September’s supply was 6% lower than August, it still exceeded September 2024 levels.
New listings are up 11% year-to-date compared with 2024, suggesting a broader improvement in stock across London.
Average rents rose 3% in September compared with August, reaching almost £600 per week — the highest September figure recorded in the past four years.
Year-to-date, rents are up 2% on 2024 levels, with growth seen across all regions except North London.
Market competitiveness, measured by the number of renters per available property, dropped 38.6% month-on-month from 20 renters per listing in August to 13 in September, signalling a more balanced environment for tenants.
Tenants spent on average 98% of their registered budget in September, up from 91% in August. Around 63% of renters secured properties under budget, while 30% paid above budget to secure preferred homes, underlining ongoing competition in key areas.
Gareth Atkins, managing director of lettings at Foxtons, said: “September saw a seasonal dip in applicant demand, but rental values remained strong, with average rents reaching a four-year high.
“Increased stock levels and resilient budgets suggest a more balanced market is emerging. Looking ahead, the Renters’ Rights Act, looking likely to begin implementation in 2026, will bring major changes, including the end of Section 21 evictions and a shift to rolling tenancies.
“These reforms are expected to reshape landlord-tenant relationships and highlight the value of working with a professional agent to get the right return on your rental investment.”
