London rental market remains stable in early 2025
Foxtons Lettings Market Index – February 2025
London rental market remains stable in early 2025 as demand and supply hold steady, Foxtons data shows
- The average rent now stands at £557 per week, slightly higher than in 2024
- Applicant demand has remained within 3% of February 2024 levels
- Supply levels remain strong, with new listings just 2% below last year’s high levels
As we progress through 2025, the Lettings market remains resilient, with strong rental demand and steady supply contributing to a balanced landscape for both renters and landlords. While seasonal trends have influenced short-term movements, overall market stability continues to define the year so far. Regional variations highlight shifts in renter preferences, particularly in areas where demand has strengthened, reinforcing London’s dynamic rental market.
The average rent in 2025 has edged higher than in 2024 year-to-date, now standing at £557 per week across the region. Rental values remained stable in February, holding firm at January levels. While studio rents have adjusted by 5% year-to-date, demand for houses has continued to drive growth, with prices rising 5% year-on-year.
Applicant demand reflected the expected seasonal adjustment this February, with an 18% month-on-month change. However, year-on-year demand remained resilient, tracking within 3% of February 2024 levels. Notably, Central London saw a strong uplift, with a 12% increase in applicant demand compared to last year, highlighting sustained interest in the area.
Competition remained strong in February, holding steady at an average of 13 applicants per instruction, in line with January’s levels. Year-on-year, North London experienced a notable 16% increase in new renters per instruction, reaching an average of 17 applicants per property.
Applicant budgets continued to trend upwards in 2025, reflecting strong confidence in the rental market. The average budget has risen to £534 per week, a 3% increase compared to 2024. South London has seen the most significant growth, with budgets increasing by 4% year-to-date, from £490 per week in 2024 to £511 per week in 2025, highlighting sustained demand in the area.
New market listings remained robust, staying close to the high levels seen in 2024, with only a marginal 2% year-on-year adjustment. The expected seasonal shift in February resulted in an 11% month-on-month change. Westminster continues to be a key hub for Lettings in 2025, maintaining its strong position from 2024, with over 10% of new market listings concentrated in the area.
In 2025, year to date, over a third of renters have secured properties at or above their budget, reflecting strong competition in the market. In February, the average renter spent 98% of their budget, a slight 1% increase from January. North London saw a notable 5% month-on-month rise in renter spending, aligning with the region’s 16% increase in new renters per instruction, highlighting heightened demand.
Gareth Atkins, Managing Director of Lettings, said:
“The rental market in 2025 is showing a more measured pace compared to the intense competition of previous years. Tenants are no longer making snap decisions to beat out the competition and are instead taking more time to explore their options and compare neighbourhoods before committing. At the same time, landlords are adjusting to evolving renter expectations by maintaining well-presented properties and setting competitive pricing. With the upcoming Renters’ Rights legislation, the market is expected to further emphasise quality and value.”
Foxtons year to date key market indicators
| Supply
New Instructions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | 0% | -1% |
| Central | 0% | 13% |
| East | 9% | 5% |
| North | -7% | 8% |
| South | -4% | -12% |
| West | 0% | -20% |
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