High profile lettings agency Foxtons says London’s rental market frenzy has passed.
It says September saw applicant activity and competition for newly instructed properties ease, while the supply of market listings remained steady.
Applicant registrations fell 21.1% from August to September as the summer lettings peak ended. Across the year to date, registrations were 11.2% below the same period in 2025.
Demand stayed below last year’s elevated levels despite stronger activity earlier in the summer. West London was the exception, with registrations 3.2% ahead year on year.
Competition for available rental properties also eased in September. Following the August peak, new renters per new instruction fell 16.4% month on month to 20.
However, the ratio stood 2.1% above the comparable period last year. This suggested demand and new instructions stayed broadly in step over the year, even as activity cooled after the summer rush.
Supply remained resilient through the summer and into early autumn, even as applicant registrations eased.
Renter budgets changed only modestly, with spending staying close to planned limits.
The average renter budget was £562 per week, up 1.0% on the same period last year. Whilst budgets slipped 1.2% from August to September, this is consistent with the general easing in applicant activity after the summer peak.
Central London recorded the highest year-to-date budget at £632 per week, while West London was the only area where budgets were below last year.
Renters spent an average of 98% of their stated budget on rent year to date, up 0.6% on the comparable period last year. September’s figure was 99%, a 0.3% increase from August.
The year-to-date breakdown shows that most renters secured a property for less than their stated budget, while a smaller share spent more than planned.
Together with broadly stable budget and rents, this suggested renters were finding homes within the limits they had set.
Similarly, achieved rents has changed very little. The average rent achieved year to date was up 0.8% to £590 per week. In September, it reached £610 per week, a 0.9% increase from August.
The modest rise contrasts with the sharper fall in applicant registrations, suggesting that rents held firm without a broad acceleration in pricing.
A Foxtons spokesperson says:“London lettings is entering a new kind of market. Applicants are still moving, but they’re making more considered choices, so understanding what’s prompting a move and matching each property to the right audience really counts.
“There are 18 renters per instruction, up 2% year on year, and average budgets remain steady at £562 a week.”
“There’s plenty to build on: rents achieved are up 1% year on year, reaching £610 per week in September, and properties are letting at 98% of budget. Strong marketing, a clear story and an excellent resident experience are what turn applicant interest into great results.”
This article is taken from Landlord Today