Foxtons: £589 Avg Rent in April as Supply Rises, Demand Dips 3%

London’s rental market continues to shift in 2025. According to Foxtons’ latest Lettings Market Report, rental supply is up while tenant demand has dipped slightly — creating a complex landscape for both renters and landlords. Despite an increase in available homes, average rents are still rising, driven by cautious landlord pricing and ongoing affordability pressures.

With more listings on the market and rents edging higher, the dynamics are shifting fast. Whether you’re searching for a new place or renegotiating a lease, understanding these trends could help you get ahead.

In April 2025, new rental instructions across London rose by 5%, pushing the total year-to-date increase in supply to 9%, according to Foxtons. The uptick offers some relief to a market previously strained by tight inventory and fears of a landlord exodus.

However, demand softened slightly — with a 3% drop in applicant registrations compared to March, defying the usual spring-time surge. This suggests renters may be hesitating due to ongoing affordability concerns or seasonal fluctuations.

Despite the increased supply, average weekly rents climbed 3% in April to £589 — indicating landlords are working to rebuild rental yields following recent financial pressures. The data aligns with broader national trends, as the Office for National Statistics reported a 7.4% annual increase in average UK private rents in May, now sitting at £1,335 per month.

While the growth in supply gives renters more options, climbing rents and reduced affordability remain hurdles — particularly for those without significant savings or negotiating leverage.

Foxtons’ Managing Director of Lettings, Gareth Atkins, highlighted the contrast with past years: “April’s market data presents a unique challenge: a 5% rise in new instructions alongside a 3% decline in applicant demand. While these shifts aren’t dramatic, they further highlight the contrast between today’s environment and the much busier summer market of two years ago.”

With landlords reassessing pricing strategies and tenants re-evaluating budgets, it’s clear that personalised rental advice can make a significant difference. Whether you’re locking in a new tenancy or looking to move, understanding market timing and neighbourhood trends is key to finding value.

At Mortgage-Tek, we support renters and buyers alike — from helping you prepare for homeownership to advising on rental strategy in a fast-changing market. If rising rents have you thinking about buying instead, our expert advisers are ready to explore all your mortgage options.