London rental market sees record rents and strong supply

Rental supply continues to remain strong ahead of the Renters’ Rights Bill, as rents hit their highest levels in September in four years, according to a new survey.

According to Foxtons Lettings Market Index reveals, despite a slight dip in demand, supply remains robust, with September 2025 listings exceeding those from the same month last year.

The data also shows that average rents rose by 3% in September 2025 compared to August, reaching nearly £600 per week, the highest September figure recorded in the past four years.

Rental values remain strong

The findings reveal that rental demand fell by 32% in September compared with August 2025, reflecting the seasonal slowdown that typically follows the end of summer.

However, supply remains strong, with new listings up 11% year-to-date compared with 2024.

With rents rising across all regions of London, except for North London, average rents are now 2% higher than in 2024.

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.”

He adds the Renters’ Rights Bill will change the landlord and tenant relationship.

He said: “Looking ahead, the Renters’ Rights Bill, 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.”

Prospective tenants now have greater choice

The survey also reveals in September, tenants spent on average 98% of their registered budget, up from 1% in August 2025.

More than 63% of renters secured properties under budget, whilst 30% were required to stretch above budget.

Market competitiveness in September, measured by new renters per new instruction, decreased 38.6% month-on-month. The market has moved from over 20 renters per available property in August 2025 to 13 renters per property in September 2025 meaning that prospective tenants now have greater choice.