The London rental market absorbed the first full month of the Renters' Rights Act largely without disruption, with applicant demand rising sharply month on month, supply continuing to grow, and affordability holding firm, according to the latest data released by Foxtons.
May was the first complete month in which the legislation operated in full force, and the most notable feature of the data is how little shifted. Seasonal momentum carried through, renter budgets barely moved year on year, and the market remained balanced throughout. A market absorbing this level of activity without straining affordability points to real underlying strength.
Applicant demand strengthened over the month, with renter registrations up 13.7% month on month as activity built into the peak summer lettings period. Despite that improvement, demand remained 7.1% below last year's levels, suggesting recovery is underway but has not yet returned to the heightened activity seen in 2025.
Competition eased relative to last year. New renters per new instruction fell 8.6% year on year, with the ratio also declining 5.5% month on month, as growing supply helped absorb the rise in applicant demand.
The result is a more balanced London rental market than 2025, with renters benefiting from greater choice while landlords retain access to a strong pool of active applicants.
Renter budgets remained stable, with the average running at £548 per week year to date, up 0.3% year on year. A 2.1% month-on-month increase reflected seasonal uplift as activity strengthened, though renters are not materially stretching beyond established affordability levels.
Supply continued to build, with market new listings up 3.0% year on year and 5.7% month on month. The growth in available stock is supporting more balanced conditions and, notably, suggests landlord confidence has remained intact following the Act's implementation.
"A month in, the Renters' Rights Act has left the London market largely unchanged," said Gareth Atkins, Foxtons' managing director of lettings.
"It is very much business as usual. Tenants saw a slight increase in available stock, with some additional movement driven by the initial impact of the new legislation, but within a couple of weeks, the market settled back into its normal rhythm. Demand remains steady and pricing stable, with renters focusing on finding the right property rather than chasing discounts.
"For landlords, the key is to focus on the fundamentals: securing the right tenant and a well-maintained property, as these are the factors that will consistently win out in a stable market."
