Property supply sees strong recovery easing competition and aiding landlords
- Average applicant budgets reached £553 per week, 2% higher than in 2024.
- Renter spend in December remained relatively consistent with November, with only a 1% decrease in the proportion of their budget that renters spend to secure a home.
- Market competitiveness in December saw an improvement, with an increase by almost 20% comparing December to November.
New data from Foxtons, London’s largest lettings agent, shows market competitiveness in December, measured by new renters per new instruction, saw an improvement, with an increase by almost 20% comparing December to November.
By the end of the year, average applicant budgets reached £553 per week, 2% higher than in 2024. Budgets cooled slightly in December, sitting 2% lower than in November. Across 2025, the largest reduction in budgets was for studio flats, which fell by 17%, whilst 1 bed, 2 bed and 3 bed flats all saw modest increases.
Renter spend in December remained relatively consistent with November, with only a 1% decrease in the proportion of their budget that renters spend to secure a home. Almost two-thirds of renters, which is approximately 63%, are securing homes below their allocated budget, while 30% are spending over their budget. These figures denote a market that, while remaining competitive, continues to offer opportunities for budget-conscious renters, alongside a large cohort willing and able to pay a premium for their preferred property.
Rental demand eased by 22% in December compared to November, which aligned with expectations that December is traditionally the quietest month of the year with fewer renters moving during the festive season. Market new listings experienced an increase in December, rising from approximately 23,000 to 25,000 month-on-month.
Property supply has seen a strong recovery, particularly in the latter half of the year. This increase of 6% in supply has been able to ease competition and provide more homes across all regions of the capital. This uplift should support an expected recovery from November, when many landlords appeared to pause activity whilst awaiting the Autumn Budget. Year-to-year, new instructions were 8% higher in 2025 compared to 2024.
Gareth Atkins, Managing Director of Lettings, said: “Whilst the conversation was dominated by Renters’ Rights last year, we called it correctly: modest rent growth, with new listings steadily increasing despite the noise. That’s the real story – supply driving competition between landlords, not legislation stalling the market.
“2026 follows the same script. Moderate growth with intensifying competition. The winners will be those landlords pricing their listings with surgical precision, using real-time data, not guesswork. The Renters’ Rights Act phases in from 1 May, and yes, it’ll change the lettings market. However, confidence tends to rebound once speculation ends and the rules become actionable. Your Foxtons agent knows exactly how to navigate this new landscape. So, let’s crack on.”
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