London’s PRS sees seasonal dip but listings stay strong

London’s private rented sector experienced its usual seasonal dip in August as tenant registrations fell by 11% compared with July, Foxtons reveals.

The letting agency says that the slowdown follows the usual late-summer trend as families return from holidays and students prepare for the academic year.

Compared with the same month last year, demand was down 13%, leaving overall activity 7% lower than in 2024.

While central London has held steady, south and west London recorded the sharpest annual declines.

Capital’s PRS is ‘resilient’

The agency’s director of lettings, Gareth Atkins, said: “As expected, August saw a seasonal dip in applicant demand, but the market remains resilient with strong stock levels and demand to match.

“The increase in new listings is giving tenants more choice, while landlords continue to benefit from solid year-to-date growth.”

He added: “As we move into autumn, maintaining high-quality properties that are competitively priced will be key in a market where tenants are increasingly prioritising quality.”

Rental supply grew in London

Foxtons lettings market index also reveals that despite lower tenant demand, the number of homes available remains high as nearly 40,000 properties were added to the market in August.

That helped push London’s year-to-date supply 11% ahead of the same point in 2024.

This steady flow of stock has provided renters with greater choice while maintaining competitive conditions for landlords.

Market competitiveness, measured by the ratio of applicants to new instructions, rose 10.6% from July, helping to narrow the year-on-year gap.

The measure now sits just 4.1% behind 2024.

Rents higher than last year

However, rents edged down from July’s summer peak, falling 5% to an average of £576 per week.

Despite this, rents remain 3% higher than last year on a year-to-date basis, with growth recorded across most parts of the capital.

Only rents in north London saw a slight decline.

Foxtons also points out that tenant budgets held firm, slipping just 1% from July.

On average, tenants spent 97% of their rent budget in August, compared with 99% the previous month.