## Sharp Rise in Tenant Demand at Start of 2026

Tenant demand across London’s lettings market surged dramatically in January 2026, with new registrations increasing by 93% compared to December 2025, according to Foxtons’ latest Lettings Market Index. This substantial growth also coincided with an 11% month-on-month rise in the number of renters competing for each available property, indicating heightened competition in the market.

Tenant budgets averaged £539 per week in January, remaining steady on an annual basis despite a 2% increase recorded in December 2025. Renters are utilising approximately 2% more of their available budgets than a year ago, with a 1% increase compared to the previous month, suggesting that affordability pressures are gradually intensifying.

## Growth in Corporate Enquiries and New Listings

Foxtons’ managing director of lettings, Gareth Atkins, commented on the market trends: “January has, as expected, brought a strong return of new applicants – almost double the volume we saw in December. We’ve also seen a steady rise in corporate enquiries, demonstrating that London continues to be a key hub for businesses across the UK, Europe and beyond.”

The lettings agency also reported that new property listings in January were 6% higher than the same month in 2025 and 13% above the level seen in December 2025. This increase in supply follows the typical post-festive market recovery as landlords return properties to the market after the holiday period.

## Mixed Regional Market Indicators Across London

Despite the overall rise in demand and listings, Foxtons’ year-to-date data reveals contrasting trends across London’s regions. New instructions across the capital fell by 10%, while renter registrations dropped 16%, indicating some regional variation in market activity.

– Central London experienced a 30% decline in supply and an 18% decrease in demand.
– East London saw a 2% reduction in instructions and a 12% fall in registrations.
– North London recorded an 11% increase in supply but a 19% drop in demand.
– South London faced a 17% decline in instructions alongside a 19% decrease in registrations.
– West London reported a 23% rise in supply with demand 6% lower year on year.

These figures suggest that while some areas are seeing increased availability, tenant demand is not uniformly strong across all parts of the city.

## What This Means for Landlords and Letting Agents

The sharp rise in tenant registrations and increased competition per property in January indicates a robust start to the year for landlords seeking to let properties in London. The steady corporate interest highlights ongoing demand from business tenants, which can offer landlords more stable rental income opportunities.

However, the regional disparities in supply and demand underline the importance for landlords and agents to monitor local market conditions closely. Areas with falling demand and rising supply may require more competitive pricing or enhanced marketing strategies to attract tenants.

The stable tenant budgets suggest that while rents are not increasing sharply, tenants are stretching their budgets slightly more, which may influence rent-setting decisions for landlords aiming to balance occupancy with income.

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Suggested internal link anchors
– tenant demand
– lettings market
– corporate enquiries
– new property listings
– tenant budgets
– London lettings market
– supply and demand
– regional market trends
– rent affordability
– landlord strategies
– letting agents
– property management

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TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/