Housing supply in London improved in July 2025, with almost 50,000 new rental listings recorded, a 4% increase from June 2025 and 12% higher than July 2024 according to Foxtons.

Renter demand increased with a 25% uplift in new applicant registrations month-on-month and when compared to July 2024 demand remains marginally higher. Central London leads the way in absolute volume and growth, recording a 4% increase year-on-year. In contrast, the South and West regions saw declines of 15% and 22% respectively. 

Gareth Atkins, Managing Director of Lettings at Foxtons, said: “The London lettings market remained red hot in July. Despite a modest uptick in supply, applicant demand surged by 25% month-on-month, resulting in over 18 applicants per available property. This sustained pressure has driven rental prices upward in line with seasonal trends, and we expect this momentum to continue for the rest of the summer.”

Average rents rose 1% month-on-month in July to £596 per week, just shy of the market peak recorded in 2023. The number of new renters per new instruction rose 21% month-on-month, reaching 18.5 renters per available property in July.

Central and North London were the only regions to see an increase in competitiveness compared to last year, while the East and Surrey regions experienced the most pronounced declines.