Foxtons signals end of London rental market boom

Foxtons signals end of London rental market boom

Foxtons reports a cooling in London’s rental market with reduced applicant activity and eased competition for properties in September, while supply levels remain stable. This marks a shift from the previous high-demand environment.

Foxtons, a prominent lettings agency, has indicated that the intense demand and competition seen in London’s rental market over recent years is now subsiding. In September 2026, the number of applicants registering to rent properties fell by 21.1% compared to August, reflecting the end of the summer lettings peak. Year-to-date registrations are also down 11.2% compared to the same period in 2025, signalling a broader cooling trend.

Despite this overall decline, West London bucks the trend with applicant registrations 3.2% higher year-on-year. Competition for rental properties has also softened; the ratio of new renters per new property instruction dropped 16.4% month-on-month to 20 applicants per listing in September. However, this figure remains slightly above last year’s comparable period by 2.1%, suggesting that demand and supply have broadly kept pace over the year despite the recent slowdown.

Foxtons rental market data and trends

Foxtons’ data shows that while applicant interest has eased, the supply of rental properties has remained resilient through the summer and into early autumn. This balance between supply and demand has helped rents to hold firm without significant upward pressure. The average weekly renter budget was £562 in September, a modest 1.0% increase year-on-year but a 1.2% decrease from August, consistent with seasonal trends.

Central London continues to command the highest budgets, averaging £632 per week year-to-date. West London is the only area where budgets have fallen below last year’s levels. Renters are spending close to their budgets, with an average of 98% of the stated budget being used on rent year-to-date, slightly up from the previous year. In September, this rose to 99%, indicating that tenants are generally finding properties within their financial limits.

The average rent achieved across London was £590 per week year-to-date, up 0.8% on 2025, and £610 per week in September, a 0.9% increase from August. This modest rent growth contrasts with the sharper decline in applicant registrations, suggesting that landlords have maintained rent levels despite reduced competition. Foxtons highlights that the market is moving towards a more considered approach by tenants, who are making more deliberate choices rather than competing aggressively for properties.

Context and implications for landlords and agents

The cooling rental market in London reflects a broader adjustment following years of high demand and rising rents. For landlords, this means less pressure to increase rents aggressively and potentially longer void periods if properties are not marketed effectively. The steady supply of properties suggests that landlords are continuing to list homes, but tenant demand is more selective, requiring sharper marketing and tenant matching strategies.

Letting agents will need to focus on understanding tenant motivations and preferences to successfully place applicants. The data indicates that quality of the rental experience and clear communication about property features are increasingly important. Landlords may also need to review rent levels carefully to remain competitive without eroding income unnecessarily.

For tenants, the easing competition and stable rents may improve affordability and choice, but the market remains tight enough to require careful budgeting. The fact that most renters are securing properties within their budgets suggests a relatively balanced market, though this could vary by area.

What landlords should consider now

Landlords should monitor local market conditions closely, particularly in areas like West London where demand remains stronger. Reviewing rent levels against achieved rents and tenant budgets can help avoid overpricing properties, which could lead to longer voids. Maintaining property standards and offering a good tenant experience will be key to attracting and retaining tenants in a more selective market.

Letting agents should enhance marketing efforts to highlight property benefits clearly and tailor communications to the right tenant profiles. Keeping up to date with market data and tenant behaviour changes will support better decision-making on rent setting and property management.

Keeping your rental properties compliant and competitive

Membership of The Landlord Association (TLA) offers landlords and letting agents access to practical compliance resources and market insights that can help in adapting to changing rental conditions. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to assist with organising rental documents, recording key actions such as inspections and communications, and accessing up-to-date compliance information. These tools can support landlords in maintaining property standards and meeting regulatory obligations while responding effectively to market shifts.

Exploring TLA membership can provide landlords and agents with tailored support to manage portfolios efficiently, prepare for new regulatory requirements, and keep evidence of compliance activities. ORBIT’s developing features aim to streamline property management tasks, helping landlords stay organised as market dynamics evolve.

Looking ahead, landlords should keep an eye on rental demand trends and budget changes, as well as any regulatory updates that may affect tenancy management. Maintaining flexibility and responsiveness will be important to navigate the evolving London rental market.

Sources: Landlord Today