London lettings demand and supply rise

Landlords in London entered the new Renters’ Rights Act regime with supply above last year and tenant demand rising into spring.

Foxtons’ Lettings Market Index for April shows new listings were 3.7% higher year on year, although they fell 6% compared with March after the early spring peak.

The figures provide the final market snapshot before the Act’s implementation.

Rents in the capital were flat year on year, as tenants continued to spend 99% of their budgets, the same level recorded a year earlier.

Landlords rewarded

The firm’s managing director of lettings, Gareth Atkins, said: “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.

“The more interesting shift is behavioural: renters are moving earlier and acting more decisively, but they’re also more discerning about where they spend their time.”

He added: “A property that would have generated viewings on momentum alone two years ago now needs to earn them.

“The market is rewarding landlords who treat the launch of a let with the same care as the launch of a sale: clear positioning, accurate pricing, and a property that’s genuinely ready on day one.”

Tenant demand grows

Applicant demand increased by 9.5% month on month in April as renter registrations recovered during Spring.

Demand, however, remained 6% below April 2025 levels, leaving activity short of the heightened conditions seen last year.

Competition also eased compared with 2025, with renters per instruction down 6.5% year on year as supply improved.

On a monthly basis, renters per instruction rose 15.6%, indicating firmer competition for available homes.

Supply rises across London

Foxtons’ year-to-date figures show supply across London was 1% higher than last year, while new renter registrations were 6% lower.

Central London recorded a 24% drop in new instructions and a 16% fall in renter registrations.

East London saw supply rise 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 was down 1%, with demand falling 8%.

West London recorded a 40% rise in new instructions and a 17% increase in renter registrations.