London lettings market supply remains strong amid seasonal softening in demand
Foxtons Lettings Market Index – August 2025
- Rental demand fell by 11% in August compared with July 2025, reflecting the typical seasonal slowdown as summer draws to a close.
- Supply remains strong, with August 2025 listings exceeding August 2024 levels. Nearly 40,000 new listings were recorded in August alone as landlords continue to bring quality listings to the London rental market.
- Average rents eased back slightly in August to £576 per week, down 5% from July’s seasonal peak.
New data from Foxtons, London’s largest lettings agent, shows rental demand fell by 11% in August compared with July 2025, reflecting the typical seasonal lull as summer draws to a close. This dip aligns with the end of school holidays and the return of university students, which traditionally leads to reduced applications. Compared to August last year, registrations were down 13%, leaving year-to-date figures 7% lower than in 2024. Central London continues to perform similarly to last year, while South and West London are seeing the steepest year-on-year declines.
Supply remains strong, with August 2025 listings exceeding August 2024 levels despite the usual seasonal slowdown from July. Nearly 40,000 new listings were recorded in August alone. Year to date, supply is up 11% compared with the same period in 2024 as landlords continue to bring stock to London’s busy rental market.
Market competitiveness in August, measured by new renters per new instruction, rose 10.6% month on month as fewer applicants and new listings entered the market compared to July’s seasonal high. This increase has further improved the year-to-date figure, and the market is now only 4.1% behind 2024.
Average rents eased back slightly in August, down 5% from July’s seasonal peak, to £576 per week. Comparatively rents remain higher than last year, with a 3% year-to-date increase. Regional growth has been consistent in 2025, with only North London recording a slight decline year-on-year.
Renter budgets remain robust, showing only a marginal 1% dip from July. Budgets in August 2025 were higher than in August 2024, with year-to-date growth evident across all regions except North London, which recorded a very small decline. Tenants spent an average of 97% of their stated budget in August, down from 99% in July. Year to date, renter spend is broadly consistent with 2024, recording only a 1% reduction.
Gareth Atkins, Managing Director of Lettings, said: “As expected, August saw a seasonal dip in applicant demand but the market remains resilient with strong stock levels and demand to match. The increase in new listings is giving tenants more choice, while landlords continue to benefit from solid year-to-date growth. As we move into autumn, maintaining high-quality properties that are competitively priced will be key in a market where tenants are increasingly prioritising quality.”
Foxtons year-to-date key market indicators
| Supply
New Instructions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | -1% | -7% |
| Central | -4% | -1% |
| East | 18% | -5% |
| North | -9% | 1% |
| South | -5% | -13% |
| West | -9% | -20% |
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