Foxtons’ latest Lettings Market Index reveals a strong rebound in rental activity across London this May, with both demand and supply climbing sharply after April’s slowdown. While seasonal patterns are driving renewed momentum, year-to-date figures show a more cautious, regionally varied market – with signs of resilience, tempered optimism, and continued affordability pressures for renters.
- New market listings increased 9% month-on-month.
- Average weekly rent held steady at £589, up 3% year-to-date.
- Central London outperformed; South and West London saw 18–23% YTD declines.
- Competitiveness rose 14% in May, but remains 23.7% lower than in 2024.
- Average applicant budgets rose 1% month-on-month, now above £550.
- 64% of renters secured homes under budget, reflecting better supply.
Original article source: Property Industry Eye
The May figures from Foxtons signal something worth paying attention to: the London lettings market isn’t just waking up for summer – it’s moving with intent.
A 35% monthly jump in applicant demand is notable in any climate, particularly following April’s unexpected lull. Combined with a third straight month of increased listings, it points to improving market balance – and to a rental sector that’s becoming more dynamic, not just more active.
That said, this isn’t a blanket resurgence. The strength of central London stands in sharp contrast to the declines seen in South and West London. These regional variations underscore a key reality – location and property type are having a more pronounced effect on performance than they did in previous years.
Affordability is clearly playing a part. The fact that 64% of renters are still managing to find properties below budget – even with rising competition – suggests supply is doing its job. But it also highlights that price sensitivity remains a defining feature of today’s market, especially outside prime zones.
This climate presents a mixed but manageable landscape. Margins are slowly recovering in some areas, particularly where rents have edged up year to date. But tenant expectations have shifted – and flexibility, presentation, and pricing all carry more weight.
Investors and portfolio owners should also take note of renewed demand for central locations and larger-format homes. These trends suggest a rebalancing of priorities among urban renters, with location quality and lifestyle-led features returning to the fore.
Heading into summer, the lettings picture is in motion. And for those positioned strategically, this phase of momentum may offer opportunities that were less visible a year ago.
