London’s lettings demand jumped by 93% in January

Tenant demand across London’s lettings market rose sharply at the start of the year, with new registrations increasing by 93% between December 2025 and January 2026.

That’s according to Foxtons’ latest Lettings Market Index, which highlights there was also an 11% month-on-month rise in renters competing for each home.

Tenant budgets averaged £539 per week in January, unchanged on an annual basis, which compares with the 2% rise seen in December.

Renters used around 2% more of their available budget than a year ago and it’s 1% higher month on month.

Growth in corporate enquiries

The firm’s managing director of lettings, Gareth Atkins, said: “January has, as expected, brought a strong return of new applicants – almost double the volume we saw in December.

“We’ve also seen a steady rise in corporate enquiries, demonstrating that London continues to be a key hub for businesses across the UK, Europe and beyond.”

Foxtons also says that new listings were 6% higher than January 2025 and 13% higher than last December as properties returned to the market following the festive slowdown.

The year-to-date data also shows that across London, new instructions fell 10%, while renter registrations dropped 16%.

London’s market indicators

Central London recorded a 30% fall in supply and an 18% decline in demand, while east London saw instructions slipping 2% with registrations down 12%.

North London posted a 11% rise in supply, while demand fell 19%.

South London saw instructions decline by 17%, alongside a 19% drop in registrations.

West London registered a 23% increase in supply, with demand 6% lower year on year.