Foxtons has launched its Letting Market Index for Could 2025, which exhibits rising demand and provide in London’s lettings market attributable to “seasonal momentum”, with a extra modest image year-on-year.
The rise in applicant registrations and market listings final month continues to display resilience as we head into summer season, it says, although regional variations and a still-moderate year-on-year restoration spotlight a extra nuanced image of demand.
The most recent information additionally exhibits that applicant registrations surged by 35% month-on-month in Could, marking a robust seasonal uplift following April’s surprising dip, whereas provide continued to strengthen, with market listings up 9% month-on-month in Could, per positive factors in March and April.
In the meantime, common hire in Could held regular at £589 per week, according to April. Yr-to-date, rental values are up 3% versus 2024, Foxtons discovered.
The hike in applicant registrations follows April’s surprising dip and year-to-date applicant volumes stay 5% under 2024 ranges, suggesting a extra thought of and cautious renter mindset.
Regionally, central London continues to outperform, displaying development versus final yr, whereas South and West London have seen notable YTD declines of 18% and 23% respectively.
Market competitiveness in Could noticed a 14% enhance from April, 14.15 new renters per new instruction. Nevertheless, Foxtons says, whereas this means rising competitors, the year-to-date determine continues to be 23.7% decrease than 2024, reinforcing a broader development of diminished urgency.
Central, North and Surrey areas present the very best enhance in competitiveness, rising 24.7%, 21.6% and 34.7% respectively.
General, common applicant budgets rose 1% month-on-month and now stands above £550 per week. Development is underpinned by renewed curiosity in central places and larger-format properties, though affordability pressures persist in additional cost-sensitive boroughs.
The strengthening provide chain is per positive factors in March and April, with market listings up 9% month-on-month in Could. This sums to a 9% year-to-date development in listings in comparison with 2024, indicating enhancing market liquidity and better option for renters. Roughly 40,000 new rental listings have been recorded in Could throughout London.
The typical hire determine in Could held at £589 per week, according to April, and exhibits a year-to-date rental values enhance of three% versus 2024. That is led by regional will increase in West London (+5%), South London (+4%) and Surrey (+5%), indicating landlords are starting to get better margins, though additional uplift could also be constrained by affordability.
In response to Foxtons, renters spent a mean of 98% of their acknowledged budgets in Could, up 1% from April. Regardless of the rise, 64% of renters nonetheless secured properties underneath funds, reflecting improved provide and a extra balanced market.
Gareth Atkins, managing director of lettings on the company, mentioned: “London’s rental market got here again with actual power in Could. We noticed a 35% surge in applicant demand alongside sustained development in provide, a transparent signal of a market gaining power and momentum. Central London continues to outperform, and renters are re-engaging with tempo and objective. As we transfer into summer season, the lettings panorama is vibrant, aggressive, and filled with alternative for each landlords and tenants.”
Foxtons yr so far key market indicators
| Provide
New Directions (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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