London’s PRS thrives with record listings and strong demand

London’s private rented sector is delivering a strong performance, driven by a big rise in available properties and a robust surge in tenant interest.

According to Foxtons’ latest data, nearly 50,000 new rental listings flooded the market, marking a 4% rise from June and a 12% jump compared to July 2024.

This influx represents the highest monthly volume in four years, reflecting growing confidence among landlords, the firm says.

Tenant enthusiasm also soared, with new applicant registrations climbing 25% from June.

This figure edges slightly above last year’s July numbers, highlighting the market’s enduring appeal and its ability to follow seasonal patterns.

London’s PRS is ‘red hot’

The firm’s managing director of lettings, Gareth Atkins, said: “The London lettings market remained red hot in July.

“Despite a modest uptick in supply, applicant demand surged by 25% month-on-month, resulting in over 18 applicants per available property.”

He added: “This sustained pressure has driven rental prices upward in line with seasonal trends, and we expect this momentum to continue for the rest of the summer.”

Best performing areas

For performance, central London led the charge, posting a 4% year-on-year increase in registrations, while south and west London saw falls of 15% and 22%, respectively.

Rents inched up by 1% from June, reaching an average of £596 per week, just below the 2023 peak.

Since April, rents have stabilised, absorbing the increased supply while maintaining modest growth.

The average renter budget hit £554 per week year-to-date, a 2% rise from 2024, with west London seeing the largest budget growth at 4%.

Strong tenant competition

However, tenant competition remained fierce, with 18.5 renters vying for each available property in July, a 21% increase from June.

Year-on-year competitiveness dipped by 2.9%, suggesting a slight easing of pressure.

Central and north London bucked this trend, showing stronger competition than last year, while east London and Surrey saw notable declines.

Tenants spent 99% of their stated budgets on average, with central London renters often exceeding their limits.

Across the market, 29% of tenants stretched beyond their budgets to secure homes, while 63% secured properties below their budget, a sign of improved choice due to the improved supply.