Strong rental supply continues amid seasonal slowdown in demand
Rental supply remained resilient in October, continuing the strong trend seen throughout 2025. Overall, year-to-date figures show new listings up 10% compared with last year, highlighting a sustained improvement in market supply.
Average rents edged down by 3% in October 2025 compared with September 2025, settling at £575 per week. This slight dip aligns with the typical seasonal pattern seen in October over the past two years.
Renter spending patterns in October closely mirrored those seen in September, with tenants spending an average of 99% of their registered budgets.
New data from Foxtons, London’s largest lettings agent, shows rental supply remained resilient in October, continuing the strong trend seen throughout 2025. Despite a 7% month-on-month dip from September, listing volumes still surpassed those recorded in October 2024. Overall, year-to-date figures show new listings up 10% compared with last year, highlighting a sustained improvement in market supply.
Rental demand eased by 33% in October 2025 compared with September 2025, in line with a forecast seasonal slowdown during the buildup to Christmas. Year-to-date, applicant demand continues to track 7% lower than in 2024, as demand remains steady, supported by the strong underlying need for rental accommodation in London. The reduction in demand in renter registrations was predominantly within South and West regions.
Average rents edged down by 3% in October 2025 compared with September 2025, settling at £575 per week. This slight dip aligns with the typical seasonal pattern seen in October over the past two years. Year-to-date, rents remain 2% higher than in 2024, with growth recorded across all London regions except North London. The continued upward trajectory underscores the resilience of rental prices, supported by sustained tenant demand.
Market competitiveness in October, measured by new renters per instruction, cooled notably by 28.9% month-on-month. New data shows the market has fallen from around 20 renters competing for each available property in August to nine in October meaning that prospective tenants now have a greater chance of signing a property.
Renter spending patterns in October closely mirrored those seen in September, with tenants spending an average of 99% of their registered budgets. Around 63% of renters secured properties below budget, while 30% needed to stretch above it. These figures reflect a still-competitive market, where most tenants are finding options within budget, though a significant share continue to pay a premium for their preferred homes.
Gareth Atkins, Managing Director of Lettings, said:
“October saw a seasonal slowdown in demand, but the London lettings market remains resilient. The recent Royal Assent of the Renters’ Rights Act is a significant milestone, and with Phase 1 implementation confirmed for 1 May 2025, landlords should prepare for upcoming changes by working with a London lettings expert to get the right price for their rental property. Despite easing competition, rental values have held firm, supported by strong applicant budgets and improved supply. These trends underline the continued strength of London’s rental sector and its ability to deliver returns for landlords, even in a shifting regulatory landscape.”
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