London-focussed agency Foxtons says supply levels in the capital’s lettings market are running ahead of last year’s level.
In its latest market snapshot, for April, it says the market was already moving towards more balanced conditions ahead of the implementation of the Renters Rights Act, with improving supply easing competitive pressure as demand continues to rebuild.
Activity in the lettings market strengthened through the month, with applicant demand recovering and supply ahead of last year, while affordability metrics held stable and rents stayed flat year on year.
Supply levels remained ahead of last year, with new listings up 3.7% year on year – a signal of continued landlord confidence, says the agency.
Against March, listings dipped 6.0% following the early spring peak, but stock levels remained sufficient to support more balanced conditions.
Applicant demand continued its seasonal recovery in April, with registrations rising 9.5% month on month.
But even with this improvement, demand finished April 6.0% below last year’s levels, showing that while momentum is building, it has yet to return to the heightened activity seen in 2025.
Competition eased this April compared with last year, with renters per instruction down 6.5% year on year as supply improved. That said, a 15.6% month-on-month increase shows demand beginning to re-accelerate, pointing to a market that is more balanced but still active.
Renters continued to spend 99% of their budgets, unchanged year on year and pointing to consistent affordability conditions.
The slight 0.1% decrease month on month suggests renters were not stretching beyond established limits.
This balance between steady budgets and rising activity points to a market that is growing without placing additional pressure on affordability.
A Foxtons spokesperson says “There is a lot of choice out there for renters right now, and the operators coming out ahead in such a competitive landscape are the ones doing the fundamentals well.
“Price it right. Show the value clearly. Make the process seamless from first enquiry to move-in and resist the temptation to overengineer it.
“We’re all finding our feet in a new and genuinely exciting chapter for Build to Rent, and patience matters as much as pace. The data in this month’s report tells a clear story: residents are deliberate, informed and ready to commit when the offering stacks up.”
This article is taken from Landlord Today