London’s lettings market booms with increased supply

London’s rental sector experienced a strong uplift in June, driven by a big rise in the number of available properties and growing tenant interest, data reveals.

The market analysis from Foxtons shows that the capital’s PRS is in robust form with an 18% rise in new listings compared to May, reaching nearly 45,000 properties, the highest in four years.

This rented home influx has created a dynamic environment, providing renters with greater options while maintaining stability for property owners.

Foxtons also says that tenant engagement soared, with a 21% month-on-month increase in applicant registrations, though this figure remains 4% below June 2024 levels.

London’s lettings market

The firm’s managing director of lettings, Gareth Atkins, said: “The London lettings market showed strong signs of stability in June, with applicant numbers rising 21% from May and new listings at their strongest level in four years.

“This increase in supply is helping to ease pressure on renters, as seasonal demand increases, and with more applicants in the market, good Landlords will see strong demand across the capital.”

He added: “As we move into the summer, we expect this healthy balance between supply and demand to continue, offering more choice for renters and a stable and predictable environment for London’s landlords.”

Tenant demand in London

Foxtons’ data also highlights that tenant demand this year has closely mirrored last year, trailing by just 4% year-to-date.

Central London saw a 4% rise in tenant registrations compared to last year, and north London reported a 5% increase.

However, east London experienced a 6% decline, with South and West London seeing sharper drops of 15% and 22%, respectively.

Supply and demand

The balance between supply and demand has stabilised competition in the market.

Since supply has grown, competition has eased with more tenants able to secure properties.

June saw 63% of renters finalising tenancies below their stated budgets and 98% utilising their full registered budgets.

Weekly rents edged up by 1% from May, reaching £593, a marked increase from June 2024.

Tenant budgets also rose modestly by 1% month-on-month, averaging more than £550 per week, reflecting a 2% year-to-date increase compared to 2024.