0:01 AM, 19th June 2025, About 3 weeks ago
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London’s rental sector experienced a robust resurgence in May, driven by a sharp increase in tenant interest and a steady rise in available properties, research reveals.
According to Foxtons’ latest market index, the capital saw a dynamic market, with heightened activity signalling a strong seasonal boost as summer approaches.
Tenant registrations soared by 35% from April to May, rebounding from a surprising decline in the previous month.
Despite this monthly spike, overall applicant numbers for the year remain 5% below 2024 levels, indicating a cautious approach among renters.
The firm’s managing director of lettings, Gareth Atkins, said: “London’s rental market came back with real force in May.
“We saw a 35% surge in applicant demand alongside sustained growth in supply, a clear sign of a market gaining strength and momentum.
“Central London continues to outperform, and renters are re-engaging with pace and purpose.”
He added: “As we move into summer, the lettings landscape is vibrant, competitive and full of opportunity for both landlords and tenants.”
Foxtons says that central London led the charge with year-on-year growth, while South and West London lagged, posting declines of 18% and 23%, respectively.
The market grew more competitive, with 14.15 new renters vying for each new listing, a 14% jump from April.
However, this figure remains 23.7% lower than last year, suggesting less frenetic demand overall.
Central London, north London and Surrey saw the sharpest rises in competition, with increases of 24.7%, 21.6%, and 34.7%, respectively.
The number of available rental properties also grew, with listings climbing 9% month-on-month, similar to gains made in March and April.
This brought year-to-date growth to 9% compared to 2024, with roughly 40,000 new listings recorded across the capital in May.
This uptick has enhanced market fluidity, offering tenants greater choice.
Rent prices remained stable at £589 per week, matching April’s figure, though year-to-date values have risen 3% compared to 2024.
West London, south London and Surrey led with increases of 5%, 4% and 5%, respectively, as landlords cautiously regain pricing power.
However, affordability constraints in budget-sensitive areas may limit further rises.
Tenant budgets edged up 1% to just over £550 per week, fuelled by renewed interest in central locations and larger homes.
Notably, 64% of renters secured properties below their stated budgets, a 1% improvement from April, reflecting a more balanced market bolstered by improved supply.
