Market competitiveness in London's lettings sector improved in November, with the ratio of new renters per instruction rising 5.1% from 8.9 to 9.4 applicants per instruction.
New data from Foxtons shows average rental prices declined 4% in November, settling at £551 per week. These figures remain closely aligned with November levels observed over the past four years. Year-to-date, average rental prices are 2% higher in 2025 compared to 2024.
Applicant budgets remained stable in November, holding at £535 per week, the same level observed in October. Year-to-date figures show a 2% increase compared to 2024 in all regions except North London.
Budgets for studio flats have declined 17% year-on-year, while slight increases have been recorded for one-, two-, and three-bedroom properties, demonstrating that demand for rental properties continues to prop up values.
Renter spend in November remained broadly consistent with October, with tenants allocating an average of 99% of their registered budgets to secure accommodation. Approximately 63% of renters achieved deals below their stated budgets, while 30% exceeded them.
These dynamics underscore a market that, while competitive, continues to offer opportunities for budget-conscious renters, alongside a segment willing to pay a premium for their preferred property.
Rental demand continued to decline in line with seasonal expectations in November, registering a 22% decrease compared to October. Market new instructions experienced a decline in November 2025, falling 33% compared to October 2025. The number of listings dropped from over 34,000 in October to approximately 23,000 in November.
"November saw continued adjustment in the lettings market, with seasonal trends contributing to softer demand and fewer new instructions," said Gareth Atkins, managing director of lettings.
"Applicant budgets have remained steady, and the ratio of renters per instruction improved. Year-to-date listings remain ahead of 2024 levels, and rental prices continue to track close to historic norms, pointing to healthy competition across the market."
