New data from Foxtons for October 2025 confirms a predictable seasonal cooling in the London rental market. While demand has eased, key metrics—particularly listing volumes and annual rent growth—highlight a resilient market supported by sustained tenant budgets and strong underlying demand.

Supply: Resilient Listings Outpace Last Year

Despite the seasonal slow-down, the supply side of the market remains robust, continuing a strong trend throughout 2025.

• Year-to-Date (YTD) Listings: New listings are up $10\%$ compared with 2024, indicating a sustained improvement in the market’s inventory.

• Monthly Trend: October listings saw a $7\%$ dip compared to the peak month of September, but still surpassed volumes recorded in October 2024.

This sustained supply is a positive factor for the market’s stability and suggests that more properties are coming onto the market compared to previous years.

Demand and Rents: Annual Growth Remains Positive

• As expected with the build-up to Christmas, overall demand eased, but the underlying pressure on rental values persists.

  • Demand Slowdown: Applicant demand eased by $33\%$ month-on-month, primarily in the South and West regions of London, reflecting the seasonal dip. However, YTD applicant demand is only $7\%$ lower than in 2024, confirming steady underlying demand.

  • Average Rents: Average rents edged down by $3\%$ month-on-month to $\pounds 575$ per week, aligning with the typical seasonal pattern seen in October over the past two years.

  • Annual Resilience: Crucially, YTD rents remain $2\%$ higher than in 2024, with growth recorded across all London regions except North London.

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Market Competitiveness and Budgets

The easing of demand has made the market less frantic for prospective tenants, but high budgets remain the norm.

• Cooling Competition: Market competitiveness, measured by new renters per instruction, cooled by $28.9\%$ month-on-month. The ratio has dropped from approximately 20 renters per property in August to nine in October. This gives tenants a significantly greater chance of securing a home.

• Tenant Spending: Renter spending patterns remain aggressive. Tenants spent an average of $99\%$ of their registered budgets.

  • While $63\%$ of renters secured properties below budget, a significant $30\%$ needed to stretch above their original budget, underscoring the pressure for preferred properties.

The Outlook for Corporate Landlords

A Foxtons spokesperson noted that the resilience of rental values and tenant budgets is a positive indicator, especially for Build to Rent developments.

Corporate operators who are adjusting their pricing strategies are seeing strong uptake, validating the deep demand in the market. Furthermore, the spokesperson highlighted the significance of the Renters’ Rights Act as a “major regulatory milestone” for corporate developers and institutional landlords, urging a review of operational frameworks to align with the evolving regulatory landscape.

Key Takeaways for Landlords:

• Supply is Up: Inventory has stabilized, reducing market hysteria but confirming properties are available.

• Rents are Resilient: Despite the monthly dip, the annual trend of $2\%$ growth underscores the market’s strength.

• Demand is Steady: The underlying need for accommodation in London is high, supporting tenant budgets.