London lettings demand and supply rise

London’s lettings market has entered the new Renters’ Rights Act era with a notable increase in both supply and tenant demand, according to the latest data from Foxtons. Despite some fluctuations in monthly figures, the overall trend points to a resilient market as landlords and tenants adapt to the evolving legislative landscape.

Supply and Demand Trends in London

Foxtons’ Lettings Market Index for April reveals that new listings were 3.7% higher year on year, although they dipped by 6% compared with March, reflecting the typical post-peak spring slowdown. This snapshot offers a final view of the market before the full implementation of the Renters’ Rights Act.

Rents across the capital remained steady year on year, with tenants continuing to spend 99% of their budgets—unchanged from the previous year. This stability suggests that despite legislative changes, tenant affordability and landlord pricing strategies have remained balanced.

Landlords Rewarded for Market Savvy

Gareth Atkins, managing director of lettings at Foxtons, commented on the market’s response to the new legislation: “The Renters’ Rights Act has landed in a busy season with momentum unimpeded by the new legislation. Applicant numbers have spiked, supply is strong and budgets are holding firm.”

He highlighted a behavioural shift among renters, noting they are moving earlier and acting more decisively, while being more selective about where they invest their time. Atkins added, “A property that would have generated viewings on momentum alone two years ago now needs to earn them.”

He emphasised that the market now rewards landlords who approach lettings with the same diligence as sales, focusing on clear positioning, accurate pricing, and ensuring properties are genuinely ready from day one.

Tenant Demand and Competition

Tenant demand increased by 9.5% month on month in April as renter registrations picked up during spring. However, demand remained 6% below April 2025 levels, indicating that activity has not yet returned to the heightened conditions experienced last year.

Competition among renters eased compared with 2025, with renters per instruction down 6.5% year on year due to improved supply. On a monthly basis, however, renters per instruction rose by 15.6%, signalling firmer competition for the available homes.

Regional Variations in Supply and Demand

Foxtons’ year-to-date figures show a 1% increase in supply across London compared to last year, while new renter registrations were 6% lower overall. The data reveals significant regional differences:

• Central London experienced a 24% drop in new instructions and a 16% fall in renter registrations.
• East London saw supply rise by 7%, with demand down 7%.
• North London recorded the strongest rise in new instructions at 34%, while renter registrations were 3% lower.
• South London supply decreased by 1%, with demand falling 8%.
• West London posted a 40% increase in new instructions and a 17% rise in renter registrations.

What this means for landlords

The current market conditions suggest landlords who invest effort into preparing and pricing their properties accurately are more likely to attract tenants quickly. With renters becoming more discerning and moving earlier, properties must be presented to a high standard from the outset to secure viewings and offers.

Regional disparities highlight the importance of understanding local market dynamics. Landlords in areas like North and West London may benefit from stronger demand and supply growth, while those in Central and South London might face more competition and should adjust their strategies accordingly.

Source: Based on reporting from Property118

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