Higher stock is easing pressure, though tenant demand remains below last year
London’s lettings market continued to recover in March as the spring season gathered pace, with supply improving and tenant competition easing.
The latest Foxtons Lettings Market Index showed that while applicant registrations were still 10% lower than a year earlier, activity rose from February as renters returned to the market before the summer period.
The figures suggest demand is rebuilding after the winter slowdown, although it has not returned to last year’s levels.
New rental listings increased by 4% year on year, keeping total supply above the level recorded in 2025. The rise in available rental homes has helped reduce pressure on tenants and moved the market closer to balance.
Source: Foxtons
Competition also softened. The number of new renters per instruction fell by 9.4% year on year. The measure also edged down month on month, indicating that increased stock is giving tenants more options despite stronger seasonal demand.
Tenant budgets remained stable. Average budgets stood at about £542 a week in the year to the end of March, slightly higher than a year earlier. Month-on-month budgets were broadly unchanged, suggesting spending power has held steady as market activity has increased.
Source: Foxtons
“The Renters’ Rights Act comes into force 1 May, landing in a busy spring market,” said Gareth Atkins (pictured right), managing director of lettings at Foxtons.
“Between February and March, supply rose 11% while rents remained steady. As competition between landlords builds, pricing matters more than ever. Under RRA, you cannot accept offers above your asking price, so landlords need to be confident that asking prices reflect real demand in their local market.
“For well-presented homes priced sensibly, we expect activity to remain steady, with tenants willing to commit longer-term where they see value.”
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