London Rental Supply Up 9% YTD, Average Rent Hits £589 – Foxtons

Contractors and renters, here’s a key update on where London rents are heading. With more properties hitting the market and prices still climbing, it’s a moment of mixed signals for the capital’s rental scene.

Foxtons' latest Lettings Market Report shows London’s rental stock is climbing steadily, with a 5% increase in new listings for April alone — pushing the year-to-date supply up by 9%. This is easing some of the pressure in traditionally overheated zones and hints that fears of mass landlord exits may be easing. Applicant registrations, however, dipped by 3% month-on-month in April — a departure from the usual seasonal uptick. That mismatch between supply and demand is something both landlords and tenants should be watching closely. Average rents still rose by 3% in April, reaching £589 per week — suggesting landlords are slowly rebuilding yields after a prolonged period of margin pressure.

For contractors renting in London, this mix of rising supply and slowing demand could open up opportunities to negotiate better terms. With more choice on the market and landlords keen to secure reliable tenants, short-term contract workers might find greater flexibility — particularly in pricing or lease conditions. However, rents are still climbing overall. Just this week, the ONS reported a 7.4% annual increase in UK private rents, with the average now hitting £1,335 per month. This shows how even with more stock, affordability remains a key concern. As Gareth Atkins, Foxtons’ MD of lettings, put it: “April’s market data presents a unique challenge — increased supply alongside softening demand. While subtle, these shifts show how different today’s rental environment is from the bustling market we saw two summers ago.