Foxtons Lettings Market Index – January 2025
London rental market sees seasonal January resurgence as supply and demand rebalance, Foxtons data shows
- This January, demand for rental properties increased 83% from December 2024
- There was a 51% increase in volume of listings coming to market from December 2024
- The average rent in January 2025 increased 2% from January 2024
As we move into 2025, the London Lettings market appears to be stabilising, offering a welcome sense of predictability for both renters and landlords. Supply and demand are well-balanced, making the search for a home more manageable and reducing the urgency that defined previous years. While different parts of London are seeing shifts in activity, these reflect evolving renter preferences rather than major market changes. With affordability and competition settling into a more sustainable rhythm, the year ahead looks set to offer a steady and reliable rental landscape.
This January, whilst demand fell 3% from last January, it increased 83% from December 2024. Central London exhibited a significant 15% increase in demand from last January, followed closely by North London’s 13% increase. West London had a 15% decrease, reflecting shifting preferences across the capital.
There was a slight 2% reduction in new renters per new instruction in January 2025 compared to January 2024. North London’s year-on-year renters per new instructions increased by 25%, the highest of any London area. This is also true when comparing against December 2024, with North London seeing a 22% rise in renters per instruction.
Applicant budgets increased by 3% this January compared both to last January and to December 2024. Budgets for studio has fell by 17% from last January. While in South London, budgets increased 5% year on year, the highest of any London area.
The volume of listings coming to market declined just 5% from last January. However, compared to December 2024, there was a 51% increase. Westminster had the largest growth in new listings at 11%, the highest of any London borough.
The average rent in January increased 2% from January 2024. Central and South London both saw a 5% year-on-year increase in rent.
Gareth Atkins, Managing Director of Lettings, said: “Foxtons’ analysis of new listings in the London rental market reveals a slight increase from this time last year, but a 55% increase in available properties compared to the same period of 2023 – highlighting a notable expansion in supply. While the coming spring market should bring an uptick in demand, the substantial growth in supply is contributing to increased competition among available properties. The London Lettings market is therefore looking as if it will stabilise as we move into the spring offering predictability for both renters and landlords.”
Foxtons year to date key market indicators
| Supply
New Instructions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | -2% | -3% |
| Central | 0% | 11% |
| East | 14% | 3% |
| North | -13% | 9% |
| South | 0% | -12% |
| West | -14% | -18% |
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