Foxtons Lettings Market Report
1
Foxtons - Lettings Market
Contact
EMAIL
sarah.tonkinson@foxtons.co.uk
PHONE
+44 (0)7773 816 247
"As affordability challenges intensify in London's upper quartile rental market, some BTR
operators are pivoting towards midmarket opportunities with compelling results. While
the market in highly amenitised BTR remains competitive, there is an opportunity for
developments to reassess their pricing strategies to better align with renters' budgets. By
considering more flexible pricing, luxury BTR operators can attract a broader range of
tenants and achieve faster lease-ups. The most forward-thinking developers recognise
that sustainable growth lies in balancing premium offerings with market realities, ensuring
they meet renters' needs while addressing housing shortages.."
~ Sarah Tonkinson, Managing Director of Institutional PRS and Build to Rent
EMAIL
gareth.atkins@foxtons.co.uk
PHONE
+44 (0)7773 816 498
EMAIL
press@foxtons.co.uk
PHONE
+44 (0)20 7766 1230
As we progress through 2025, the lettings market remains resilient, with strong rental demand and
steady supply contributing to a balanced landscape for both renters and landlords. While seasonal
trends have influenced short-term movements, overall market stability continues to define
the year so far. Regional variations highlight shifts in renter preferences, particularly in areas where
demand has strengthened, reinforcing London's dynamic rental market.
· Applicant demand has remained within 3% of February 2024 levels.
· Market activity remains strong, with new listings just 2% below last year's high levels.
· The average rent now stands at £557 per week, slightly higher than in 2024.
"Whilst demand and supply closely resemble last year's figures, as we predicted, today's
landscape stands worlds apart from 2023's frenzied market. Gone are the days when
tenants made snap decisions to beat out the competition. The 2025 tenant is discerning,
exploring multiple options and neighbourhoods before committing. Especially when the
Renters' Rights legislation comes into effect, well-priced, high-quality properties will win the
day. Savvy landlords are already adapting their strategies - refreshing properties, reviewing
pricing models and calling in experienced agents to stay competitive in this evolved
marketplace."
~ Gareth Atkins, Managing Director of Lettings