New data from Foxtons shows rental demand in the capital fell by 32% in September compared with August.

But the agency claims this is in line with the seasonal slowdown that typically accompanies the end of summer. This dip aligns with the end of school holidays and the return of university students, which traditionally leads to reduced applications. 

Year-to-date, applicant demand remains 7% lower than September 2024, but the agency says levels remain stable overall due to what it calls “a strong underlying demand for rental accommodation in London.”

Foxtons says the supply of new rental listings has remained consistently strong throughout 2025, with every month since March 2025 recording higher volumes than the same month in 2024. September 2025 was 6% lower than August 2025, however it exceeded September 2024 levels. New listings are up 11% year-to-date compared with 2024, underlining a broad improvement in supply across the market.

Average rents increased by 3% in September 2025 compared to August 2025, reaching almost £600 per week, marking the highest September figure recorded in the past four years. Year-to-date, average rents are 2% higher than in 2024, with increases recorded across all London regions except North London. This upward trend highlights the resilience of pricing, supported by strong tenant demand.

Market competitiveness in September, measured by new renters per new instruction, decreased 38.6% month-on-month. The market has moved from over 20 renters per available property in August 2025 to 13 renters per property in September 2025 meaning that prospective tenants now have greater choice.

In September, tenants spent on average 98% of their registered budget, up from 1% in August 2025. 63% of renters secured properties under budget, whilst 30% were required to stretch above budget, highlighting the competitive nature of the market with a notable proportion of tenants paying a premium to secure their preferred home. 

A spokesperson says: “The London lettings market in September reflected expected seasonal moderation in applicant demand, yet rental values remained resilient, with average rents reaching a four year high. Elevated applicant budgets and sustained supply growth point to a stabilising market environment for institutional investors. As we approach 2026, the phased implementation of the Renters’ Reform Act, will introduce structural changes to the private rental sector. These developments may influence build-to-rent strategies and long-term asset planning, as tenants demand more professional management and long-term security in the tenancy.”

Foxtons year-to-date key market indicators