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%

 

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Breaking News

Popping the Asking Price Bubble

Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price   New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More
Rightmove logo
Breaking News

Highest demand to lease office space since pre-pandemic

The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More
Planning disputes on new build land
Estate Agent Talk

Planning consultations for major infrastructure to be streamlined

Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More
Breaking News

‘The property ladder pulls further away’ warns Open Property Group

For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More
Estate Agent Talk

How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase

Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More
Love or Hate Rightmove
Breaking News

Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings

Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More