Internal data released by London-focussed agency Foxtons shows that in January demand for rental properties increased 83% from December.

The volume of listings coming to market in January 2025 declined 5% from January 2024. However, compared to December 2024, there was a 51% increase. Westminster had the largest growth in new listings at 11%, the highest of any London borough.

Yet despite this mismatch the agency says the average rent in January 2025 increased only 2% from January 2024, and Central and South London both saw a 5% year-on-year increase in rent. Foxtons describes the capital’s rental market as stabilising. 

In a statement it says: “Supply and demand are well-balanced, making the search for a home more manageable and reducing the urgency that defined previous years. While different parts of London are seeing shifts in activity, these reflect evolving renter preferences rather than major market changes. With affordability and competition settling into a more sustainable rhythm, the year ahead looks set to offer a steady and reliable rental landscape.

“This January, whilst demand fell 3% from last January, it increased 83% from December 2024. Central London exhibited a significant 15% increase in demand from last January, followed closely by North London’s 13% increase. West London had a 15% decrease, reflecting shifting preferences across the capital.

“There was a slight 2% reduction in new renters per new instruction in January 2025 compared to January 2024. North London’s year-on-year renters per new instructions increased by 25%, the highest of any London area. This is also true when comparing against December 2024, with North London seeing a 22% rise in renters per instruction.”

Gareth Atkins, managing director of lettings, says: “Foxtons’ analysis of new listings in the London rental market reveals a slight increase from this time last year, but a 55% increase in available properties compared to the same period of 2023 – highlighting a notable expansion in supply. While the coming spring market should bring an uptick in demand, the substantial growth in supply is contributing to increased competition among available properties. The London Lettings market is therefore looking as if it will stabilise as we move into the spring offering predictability for both renters and landlords.”

Foxtons year to date key market indicators