Foxtons Lettings Market Index – May 2025
London lettings market gains momentum in May amid rising demand and supply, Foxtons data shows
- Applicant registrations surged by 35% month-on-month in May, marking a strong seasonal uplift following April’s unexpected dip
- Supply continued to strengthen, with market listings up 9% month-on-month in May, consistent with gains in March and April.
- Average rent in May held steady at £589 per week, in line with April. Year-to-date, rental values are up 3% versus 2024
The London lettings market continues to demonstrate resilience as we head into summer. A significant rise in applicant registrations and market listings in May points to a return in seasonal momentum, though regional differences and a still-moderate year-on-year recovery highlight a more nuanced picture of demand.
Applicant registrations surged by 35% month-on-month in May, marking a strong seasonal uplift following April’s unexpected dip. However, year-to-date applicant volumes remain 5% below 2024 levels, suggesting a more considered and cautious renter mindset. Regionally, Central London continues to outperform, showing growth versus last year, while South and West London have seen notable YTD declines of 18% and 23%, respectively.
Market competitiveness increased in May, with 14.15 new renters per new instruction, a 14% increase from April. While this suggests rising competition, the year-to-date figure is still 23.7% lower than 2024, reinforcing a broader trend of reduced urgency. Central, North and Surrey Regions show the highest increase in competitiveness, growing 24.7%, 21.6% and 34.7% respectively.
Average applicant budgets rose 1% month-on-month, now standing above £550 per week. Growth is underpinned by renewed interest in central locations and larger-format homes, although affordability pressures persist in more cost-sensitive boroughs.
Supply continued to strengthen, with market listings up 9% month-on-month in May, consistent with gains in March and April. This brings year-to-date growth in listings to 9% versus 2024, indicating improving market liquidity and better choice for renters. Approximately 40,000 new rental listings were recorded in May across London.
Average rent in May held steady at £589 per week, in line with April. Year-to-date, rental values are up 3% versus 2024, led by regional increases in West London (+5%), South London (+4%) and Surrey (+5%). This indicates landlords are beginning to recover margins, although further uplift may be constrained by affordability.
Renters spent an average of 98% of their stated budgets in May, up 1% from April. Despite the increase, 64% of renters still secured properties under budget, reflecting improved supply and a more balanced market.
Gareth Atkins, Managing Director of Lettings, 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. As we move into summer, the lettings landscape is vibrant, competitive, and full of opportunity for both landlords and tenants.”
Foxtons year to date key market indicators
| Supply
New Instructions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | 0% | -5% |
| Central | -5% | 4% |
| East | 11% | -4% |
| North | -6% | 1% |
| South | -5% | -18% |
| West | -6% | -23% |
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