London rent rises ease but tenant competition intensifies

London’s lettings market remained lively in November as more tenants chased fewer available homes, despite the usual year-end cool down.

New figures from Foxtons show the ratio of renters to each new instruction rose 5.1%, climbing from 8.9 to 9.4 applicants per listing.

The firm says that the rise suggests competition is holding up, even as overall demand softened.

Average weekly rents in the capital slipped by 4% to £551 in November.

London’s PRS sees healthy competition

Foxtons’ managing director of lettings, Gareth Atkins, said: “November saw continued adjustment in the lettings market, with seasonal trends contributing to softer demand and fewer new instructions.

“Applicant budgets have remained steady, and the ratio of renters per instruction improved.”

He added: “Year-to-date listings remain ahead of 2024 levels, and rental prices continue to track close to historic norms, pointing to healthy competition across the market.”

Data shows that tenant demand fell 22% from October’s levels, while the supply of new listings tumbled 33% month-on-month, dropping from more than 34,000 to around 23,000.

Rents are up 2%

Rents are broadly in line with the same month across the previous four years and remain 2% higher year-to-date than in 2024.

The shift reflects a market settling back into normal patterns after intense price pressure last year.

Tenant budgets also tell a similar story with the average applicant registering an average of £535 per week, unchanged from October.

Across the full year, budgets are up by 2% compared with 2024, except in north London where spend has dipped.

Renters stretch for homes

The data from Foxtons also shows a clear divide by property size: studio budgets have dropped 17% in a year, while one-, two- and three-bed homes continue to edge up.

That trend hints that larger spaces are still commanding renter attention, but renters are stretching to secure what they want.

They spent around 99% of their budgets on average, with 63% managing to settle below their limit.

However, 30% went over, reflecting a willingness among some to pay more for the right home.