London’s PRS market is rebalancing according to Foxtons, with new data from the estate agent revealing supply increased by 5% in April.
This means PRS market supply has increased by 9% so far in 2025.
During April, rents increased with the average rent up 3% to £589 a week.
However, applications fell against the expected trend for this time of the year with a 3% reduction in application registrations in April from the month before.
Additionally, the number of applicants per instruction dipped by 1.7% to 12.4.
Foxtons also analysed year-on-year data for how PRS supply and demand was faring up on a regional breakdown for the city.
In terms of supply, the East of the capital recorded the best improvement in PRS stock with a 7% increase year-on-year.
The worst area of London was the North, where supply contracted by 10% over this timeframe.
Demand largely fell across the board for all London regions, with the West recording the worst contraction of -24% year-on-year.
Central London was the only region that registered an increase in demand with a 7% increase in new renter registrations.
Gareth Atkins, managing director of lettings at Foxtons, said April’s rental market activity reflected a more balanced landscape for renters and landlords alike in the capital.
“A 5% rise in new property listings has helped ease some of the pressure seen in recent years, giving renters greater choice and more room to negotiate,” said Gareth.
“The slight slowdown in applicant registrations—down 3% month on month—also indicates a shift in pace, which is typical of a market moving toward greater stability.
“This trend, alongside a dip in the average percentage of budget spent, shows the market is becoming less competitive and more accessible for many.”
