Recent data from Foxtons indicates that London’s private rented sector (PRS) maintained a strong supply of rental properties throughout October 2025, despite a notable seasonal drop in tenant enquiries. New rental instructions were 10% higher year-on-year, providing tenants with greater choice compared to previous autumn periods. However, demand softened with renter registrations falling by 33% between September and October, reflecting the usual seasonal slowdown.

Supply trends and market resilience

Foxtons’ figures show that although listings decreased by 7% from September to October, they still outperformed the same month in 2024. This sustained supply growth is significant for landlords, as it suggests a competitive market where properties remain available to meet tenant needs. Gareth Atkins, Foxtons’ managing director of lettings, emphasised the resilience of London’s lettings market despite reduced demand, noting that rental values have held firm due to strong applicant budgets and improved supply.

For landlords, this means that while there may be less competition among tenants, rental income remains stable. It also underlines the importance of working with local letting experts to accurately price properties and navigate the evolving market conditions.

Impact of the Renters’ Rights Act

The recent Royal Assent of the Renters’ Rights Act marks a significant development for landlords in London. Phase 1 of the Act is set to be implemented on 1 May 2025, introducing new regulations that will affect tenancy management and landlord responsibilities. Atkins advises landlords to prepare for these changes by consulting with lettings professionals who can assist in setting the right rental price and ensuring compliance.

Understanding and adapting to the regulatory landscape will be crucial for landlords to maintain returns and avoid potential pitfalls as the Act comes into force.

Demand patterns and rental values

Although rental demand has dipped, Foxtons reports that the need for rental homes remains firm overall. Activity across London has been approximately 7% below 2024 levels throughout the year, with the South and West of the capital experiencing the most significant declines in enquiries. Average weekly rents fell by 3% in October to £575, reflecting typical seasonal softening, yet rents remain 2% higher year-to-date compared to 2024.

Most London boroughs recorded rental growth over the year, except for those in the North, indicating steady pricing supported by ongoing tenant demand. This stability is encouraging for landlords seeking consistent rental income despite fluctuations in tenant interest.

Reduced tenant competition and budget trends

Tenant competition has eased considerably, with the number of prospective renters per available property dropping from around 20 in August to nine in October. This reduction means tenants face less bidding pressure, which could influence how landlords approach offers and negotiations.

Tenant budgets have remained tight but consistent, with renters spending on average 99% of their registered limits. Approximately 63% of tenants secured properties below their budget, while 30% exceeded their initial financial plans. Landlords should be aware of these budget constraints when setting rents and marketing properties.

Implications for landlords

The current market conditions suggest that landlords in London can expect a steady supply of tenants, albeit with less competition among applicants. Maintaining competitive rental pricing and preparing for the Renters’ Rights Act will be essential to sustaining rental income and compliance. Working with experienced letting agents can help landlords navigate these changes effectively.

Upcoming support for landlords

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to join the hub. This initiative aims to streamline access to trusted services, helping landlords manage their properties more efficiently.