The London rental market shows signs of greater balance, Foxtons reports, with supply improving and demand easing amid ongoing economic uncertainty. According to the agency’s latest data, new rental listings rose by 5% in April compared to the previous month, helping to alleviate pressure in areas that have experienced sustained demand in recent years.

At the same time, applicant registrations fell 3% month on month and are down 5% year to date versus 2024. While Central London continues to show relative strength, South and West London have recorded more pronounced drops in demand. The average number of applicants per instruction declined to 12.4 in April, representing a 1.7% fall from March and a 14.3% year-on-year decrease. This points to reduced competition in some areas.

Average weekly rents increased by 3% year on year, reaching £589. The rise was supported by consistent demand and a stronger supply of available properties. South and West London recorded the highest regional rent growth at 4% each. Foxtons also noted a slight decline in the proportion of budget renters are spending. On average, tenants are now using 96% of their budgets, and 64% of applicants secured homes below their maximum affordability—suggesting more cautious spending behaviour.

Gareth Atkins, managing director of lettings at Foxtons, said: “April’s rental market activity reflects a more balanced landscape for renters and landlords alike. A 5% rise in new property listings has helped ease some of the pressure seen in recent years, giving renters greater choice and more room to negotiate.

“The slight slowdown in applicant registrations – down 3% month on month – also indicates a shift in pace, which is typical of a market moving toward greater stability. This trend, alongside a dip in the average percentage of budget spent, shows the market is becoming less competitive and more accessible for many.”

Average applicant budgets rose 2% compared to the same period last year, reflecting continued confidence among renters. Demand increased for one-, two-, and three-bedroom properties, while budgets for studios fell by 15%, indicating a shift in preference toward larger living spaces.

Regionally, the data reveals a mixed picture. Central London saw a 7% increase in renter registrations, despite a small decline in supply. In contrast, South and West London experienced significant reductions in demand, falling by 19% and 24%, respectively.