London’s rental market has shown resilience following the introduction of the Renters’ Rights Act, with new data from Foxtons indicating continued activity despite regulatory changes that took effect in April 2026.
The London-based agency’s April figures provide an early indication of how the lettings sector is adjusting to the new legislative framework, with supply levels maintaining year-on-year growth and demand patterns beginning to shift.
Supply and demand metrics
New property listings increased 3.7% compared with April 2025, though they declined 6% month-on-month following the spring peak. Applicant registrations rose 9.5% during April as the market entered the spring letting season, but remained 6% lower than the same period in 2025.
Competition between renters eased year-on-year, with renters per instruction down 6.5% as supply improved. However, a 15.6% month-on-month increase suggested demand was beginning to accelerate.
Rental prices remained flat year-on-year, according to the data.
Behavioural changes emerging
Gareth Atkins, Managing Director of Lettings at Foxtons, 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.”
Atkins noted a shift in renter behaviour, stating that prospective tenants are “moving earlier and acting more decisively, but they’re also more discerning about where they spend their time.”
The agency indicated that properties now require more careful presentation to generate viewings, with letting agents needing to focus on accurate pricing and property readiness.
Market implications
The data suggests London’s rental market has not experienced the supply contraction some landlords anticipated ahead of the legislation’s introduction. The year-on-year increase in new listings indicates landlords have not exited the market en masse, though the longer-term impact of the regulatory changes remains to be seen.
The shift in renter behaviour towards greater selectivity may require agents to adjust their approach to property marketing and pricing strategies in the coming months.
April’s figures represent only the first full month under the new regulatory regime, and sustained monitoring will be required to assess whether current trends continue through the remainder of 2026.
