The London lettings market showed renewed momentum in May, according to new data from Foxtons, as both demand and supply increased notably.

Applicant registrations rose by 35% compared to April, reversing last month’s dip and aligning with seasonal trends. However, year-to-date volumes remain 5% below 2024, indicating a more cautious approach among renters.

Supply also improved, with rental listings up 9% month-on-month in May, continuing the upward trend seen since March. In total, approximately 40,000 new properties were listed across London, contributing to increased market liquidity.

The average weekly rent held steady at £589, with year-to-date values up 3% versus 2024. Regional rent growth was led by West London, South London, and Surrey, each seeing increases of 4-5%.

Market competitiveness rose slightly, with 14.15 applicants per new listing - up 14% from April, though still below 2024 levels. Central London saw the strongest recovery, while South and West London continued to trail.

Applicant budgets also edged up, averaging over £550 per week, with many seeking larger homes or central locations. Despite this, 64% of renters secured properties below budget, pointing to a more balanced market.

Foxtons’ Gareth Atkins noted the strong uptick in demand and supply, calling May “a vibrant and competitive” month for London rentals.