London’s lettings market has entered the new Renters’ Rights Act era with increased supply and rising tenant demand, according to the latest data from Foxtons. Despite the legislative changes, market momentum remains strong as landlords and tenants adapt to the evolving landscape.

Supply and Demand Trends in London

Foxtons’ Lettings Market Index for April reveals that new listings in London were 3.7% higher year on year, although they decreased by 6% compared with March following the early spring peak. This data offers a crucial snapshot of the market just before the Renters’ Rights Act came into effect.

Rents across the capital remained flat compared to the previous year, with tenants continuing to spend 99% of their budgets, consistent with figures from April 2025. This stability suggests that tenant affordability and landlord pricing strategies have remained balanced despite legislative changes.

Landlords Rewarded for Market Readiness

Gareth Atkins, Foxtons’ managing director of lettings, commented on the market’s resilience: “The Renters’ Rights Act has landed in a busy season with momentum unimpeded by the new legislation.” He noted a spike in applicant numbers, strong supply, and steady budgets.

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

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

Tenant Demand Shows Mixed Signals

Applicant demand increased by 9.5% month on month in April, reflecting a recovery in renter registrations during spring. However, demand remained 6% below April 2025 levels, indicating that activity has not yet returned to the heightened conditions seen last year.

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

Regional Variations in Supply and Demand

Foxtons’ year-to-date figures show a 1% increase in supply across London compared with 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 by 7%.
• North London recorded the strongest rise in new instructions at 34%, while renter registrations were 3% lower.
• South London supply fell by 1%, with demand decreasing by 8%.
• West London showed a 40% increase in new instructions and a 17% rise in renter registrations.

What this means for landlords

The data underscores the importance of proactive management in the lettings market under the new Renters’ Rights Act. Landlords who ensure their properties are well-prepared, accurately priced, and clearly positioned are more likely to attract tenants swiftly and maintain rental income stability.

With tenant behaviour shifting towards earlier and more decisive moves, landlords and agents must adapt their marketing and letting strategies accordingly. Regional variations also suggest that landlords should tailor their approach based on local market conditions to optimise lettings performance.

Source: Based on reporting from Property118

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