London's rental market is shifting gears. While January saw a seasonal uplift in demand from December, increased supply and concerns around affordability mean the market's dynamics are changing. Here's what you need to know about Q1 2025's evolving rental landscape and how to adjust your strategy.
"...While the coming spring market should bring an uptick in demand, the substantial growth in supply means your property will face more competition. Success now depends on precision pricing that reflects both real-time market data and evolving tenant preferences in your local area...”
Gareth Atkins
Managing Director - Lettings
See the full story in the Lettings Market Report - January 2025
📈 Key numbers from the report
• This January, whilst demand fell 3% from last January, it increased 83% from December 2024.
• The volume of listings coming to market declined just 5% from last January. However, compared to December 2024, there was a 51% increase.
• The average rent achieved in January increased 2% from January 2024.
🎬 Watch: the impact of affordability on Build to Rent
Sarah Tonkinson, Managing Director - Institutional PRS and Build to Rent, shares expert insight on the affordability conversation and the opportunities it creates in London's Build to Rent sector.
More insight on the lettings market:
• Expert reactions: key debates from the Renters' Rights Bill's second reading
• Video: the complete end-to-end service for investing landlords
• Setting up an HMO: the pros, the cons and the HMO licence
ST: Affordability is the word you’ll hear everywhere this year. In London's Build to Rent sector, there’s an opportunity for market-savvy operators to use this conversation to set their offering apart.
My team had an exceptionally busy 2024 placing residents within a broad spectrum of lifestyles and a range of housing needs and search criteria. The appetite is there. In that time, we saw a crucial shift. The market grasps what Build to Rent is, and it’s now exploring the huge potential in Build to Rent to create quality rental housing. Through varied price points and amenity offerings, operators can tap into London's diverse rental demographics while addressing the city's pressing need to attract and retain talent.
Next month, Joel Ellis-Duffy, Sales Director - New Homes and I will be attending MIPIM in Cannes – where the future of urban development takes centre stage. I'll be sharing how Foxtons' pioneering data analytics and unrivalled London market expertise can transform your Build to Rent strategy. Let's meet in Cannes to explore how we can build your success in London's robust market.
Source:
• Market data: Foxtons Business Analytics produces our monthly Lettings Market Report, leveraging cutting-edge technology and our exclusive database, one of the largest for London's property market, to provide unparalleled insights for our landlords each month.
• Expert insight: To provide you with the most value, this article features our leading lettings experts. Our team's hands-on experience comes from many years in the industry with London's leading lettings agency, so you can rely on our practical, market-tested insight.
This blend of data-driven analysis and expert commentary offers a comprehensive view of the market, helping landlords navigate any market conditions with confidence. For any questions on the report or insight, ask a Foxtons expert.
