There was a 32% drop in rental demand throughout London in September in comparison with August 2025, reflecting the same old seasonal slowdown following the tip of summer time, new information from Foxtons exhibits.
The decline aligns with the shut of faculty holidays and the beginning of the tutorial 12 months, when utility volumes sometimes ease.
12 months-on-year, applicant demand was 7% decrease than in September 2024. Nonetheless, general ranges stay regular, supported by sturdy underlying demand for rental houses throughout the capital.
Rental provide has stayed sturdy in 2025, with each month since March recording greater new itemizing volumes than the identical interval in 2024. Whereas new listings dipped 6% between August and September 2025, they had been nonetheless greater than September final 12 months. Provide is up 11% year-to-date in contrast with 2024.
Common rents rose 3% in September to almost £600 per week—marking the very best common for the month in 4 years. 12 months-to-date, rents are 2% greater than in 2024, with will increase throughout all London areas besides North London.
Market competitors, measured by the variety of renters per new instruction, dropped 38.6% from August to September—falling from over 20 candidates per property to 13. This shift suggests improved selection for tenants as provide will increase.
Tenants spent a mean of 98% of their registered price range in September, up from 97% in August. Whereas 63% of renters secured properties under price range, 30% paid over their preliminary restrict—indicating ongoing competitors for well-located or high-quality houses.
Sarah Tonkinson, managing director of Institutional PRS and Construct to Hire, mentioned: “The London lettings market in September mirrored anticipated seasonal moderation in applicant demand, but rental values remained resilient, with common rents reaching a four-year excessive.
“Elevated applicant budgets and sustained provide progress level to a stabilising market atmosphere for institutional traders.
“As we strategy 2026, the phased implementation of the Renters’ Reform Act, will introduce structural adjustments to the personal rental sector. These developments might affect build-to-rent methods and long-term asset planning, as tenants demand extra skilled administration and long-term safety within the tenancy.”
Foxtons year-to-date key market indicators
| Provide
New Directions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | 0% | -7% |
| Central | -4% | -1% |
| East | 20% | -6% |
| North | -8% | -2% |
| South | -3% | -13% |
| West | -4% | -18% |
