London’s rental market thrives with stable rents and surging tenant activity

London’s rental sector is displaying resilience with consistent tenant demand, robust supply and a notable increase in tenants securing homes, according to fresh insights from Foxtons and Chestertons.

With average weekly rents climbing slightly to £557 and a 30% surge in renters moving in February, the capital’s lettings landscape remains a dynamic hub for both tenants and landlords.

Foxtons’ latest Lettings Market Index reveals that rents have nudged upwards from 2024, reaching £557 per week across London.

Despite a modest 5% dip in studio flat rents this year, house rents have risen by 5% compared to last year, fuelled by persistent demand.

Applicant interest has also held steady, fluctuating just 3% from February 2024 levels, though central London stands out with a striking 12% rise in enquiries year-on-year.

Tenants taking time

Foxtons’ managing director of lettings, Gareth Atkins, said: “The rental market in 2025 is showing a more measured pace compared to the intense competition of previous years.

“Tenants are no longer making snap decisions to beat out the competition and are instead taking more time to explore their options and compare neighbourhoods before committing.”

He added: “At the same time, landlords are adjusting to evolving renter expectations by maintaining well-presented properties and setting competitive pricing.

“With the upcoming Renters’ Rights legislation, the market is expected to further emphasise quality and value.

New listings slip

Supply remains plentiful, with new listings dipping only 2% below the lofty figures of 2024.

Westminster continues to be a lettings hotspot, accounting for more than 10% of fresh listings this year.

Competition persists, with an average of 13 renters vying for each property – a figure unchanged from January.

North London, however, has seen a 16% jump in applicants per listing, averaging 17 per home.

Renters spend £534 pw

Tenant budgets are also on the rise, reflecting confidence in the market with the typical renter now planning to spend £534 weekly, up 3% from 2024.

South London leads this trend, with budgets climbing 4% from £490 to £511 per week.

More than a third of renters have snapped up properties at or above their financial limit, spending 98% of their budget in February – a 1% increase from January.

More tenants moving in London

Meanwhile, Chestertons reports a lively February, with a 30% increase in tenants moving into properties compared to the same month in 2024.

Adam Jennings, the firm’s head of lettings, said: “We have seen a sharp increase in enquiries from tenants since the beginning of this year, driven by savvy tenants looking to move ahead of the busy spring/summer market and lock in rents that are looking for like good value.

“Further fuelling enquires are aspiring first-time buyers who were unable to buy a property ahead of the changes to stamp duty thresholds which will take effect next month.

“They are now opting to stay in the rental market and are open to signing tenancy agreements of one or two years.”

Chestertons is now expecting the volume of tenant enquiries to increase which will maintain London’s highly competitive market.