Rising listings and steady budgets signal resilience, Foxtons figures suggest
May marked the first complete month of the Renters' Rights Act in operation, and London's lettings market showed few signs of disruption.
Applicant demand rose sharply month on month, supply remained ahead of last year's levels, and affordability indicators were broadly unchanged year on year.
| Year-to-date key market indicators | ||
|---|---|---|
| Supply* | Demand* | |
| All London | 2% | -7% |
| Central | -18% | -17% |
| East | 4% | -7% |
| North | 27% | -8% |
| South | -1% | -7% |
| West | 36% | 17% |
| Source: Foxtons. * New instructions (year-on-year) | ||
Competition softened relative to the same period in 2025, with new renters per new instruction falling 8.6% year on year. The ratio also declined 5.5% month on month, suggesting that increased supply is absorbing the rise in applicant demand and producing more balanced conditions. Renters gained greater choice while landlords retained access to a substantial pool of active applicants.
Renter registrations rose 13.7% month on month as activity built into the peak summer lettings period, though demand remained 7.1% below year-ago levels, indicating that the recovery has yet to reach the elevated activity seen in 2025.
Average renter budgets edged up 0.3% year on year to £548 per week year to date, and rose 2.1% month on month, reflecting a seasonal uplift. The stability in budgets indicates that improving demand has not required renters to stretch materially beyond established affordability thresholds.
New listings increased 3% year on year and 5.7% month on month in May, providing additional stock and pointing to sustained landlord confidence following the legislation's introduction.
Source: Foxtons
"A month in, the Renters' Rights Act has left the London market largely unchanged," said Gareth Atkins, managing director of lettings at Foxtons. "It is very much business as usual.
"Tenants saw a slight increase in available stock, with some additional movement driven by the initial impact of the new legislation, but within a couple of weeks the market settled back into its normal rhythm. Demand remains steady and pricing stable, with renters focusing on finding the right property rather than chasing discounts.
"For landlords, the key is to focus on the fundamentals: securing the right tenant and a well-maintained property, as these are the factors that will consistently win out in a stable market."
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