London’s PRS stabilises as supply grows and tenant competition eases

London’s rental market is showing signs of stabilisation, with increased property supply and reduced competition among tenants, according to Foxtons.

Its latest data for April 2025 highlight a 5% month-on-month surge in new listings, contributing to a 9% year-to-date increase compared to 2024.

This growth in available properties to rent has alleviated concerns about landlord withdrawals, creating a healthier market environment.

Rents have also climbed modestly, with the average weekly rent rising 3% year-on-year to £589.

More balance for tenants and landlords

Foxtons’ managing director of lettings, Gareth Atkins, said: “April’s rental market activity reflects a more balanced landscape for renters and landlords alike.

“A 5% rise in new property listings has helped ease some of the pressure seen in recent years, giving renters greater choice and more room to negotiate.

“The slight slowdown in applicant registrations – down 3% month on month—also indicates a shift in pace, which is typical of a market moving toward greater stability.”

He added: “This trend, alongside a dip in the average percentage of budget spent, shows the market is becoming less competitive and more accessible for many.”

Where were rent rises?

Foxtons says the highest rent rises were seen in south and west London with each recording a 4% annual increase.

Despite the price growth, tenant demand has softened, with applicant registrations dropping 3% from March, bucking the usual seasonal trend.

Year-to-date, applicant numbers are 5% lower than the same period last year, particularly in south and west London, though central London continues to see stronger demand.

The number of new applicants per property listing fell to 12.4 in April, down 1.7% from March and 14.3% lower than 2024 figures, indicating a less frenetic market.

Rent budgets rise

Tenant budgets have risen by 2% year-on-year, reflecting confidence in securing quality homes.

However, budgets for studio flats have dropped by 15%, suggesting a preference for larger properties, with one-, two- and three-bedroom homes seeing budget increases.

Notably, renters are spending 96% of their budgets on average, down from previous months, with 64% securing properties below their planned budgets.

This trend, coupled with a 1% year-to-date decline in budget spend, points to greater negotiating power for tenants, the agency says.