Foxtons Lettings Market Index – February 2026
Seasonal recovery as improved supply and demand indicates a return of market momentum
- Lettings market is showing signs of seasonal recovery as we see market activity picking up, with February performance indicating that momentum is returning following a usually quieter winter period.
- Renter budgets remained broadly stable, averaging £540 per week year to date to the end of February, up 1% year on year.
The lettings market is showing signs of seasonal recovery as we see market activity picking up. While renter demand remains below last year’s levels, February performance indicates that momentum is returning following a usually quieter winter period. Alongside this, supply continues to improve, giving renters a much wider choice of homes across a spread of London locations. Renters’ budgets and rent remain broadly stable, suggesting affordability pressures have not materially worsened.
Other areas of recovery included applicant registrations, which remained below last year’s levels, but showed positive signs of picking up. Registrations were 12% lower year on year, and 11% lower month on month. Despite the monthly softening, activity continues to be materially higher than the winter low point, indicating that seasonal momentum is building as spring approaches.
Renter budgets remained broadly stable, averaging £540 per week year to date to the end of February, up 1% year on year. This suggests affordability has held relatively steady despite ongoing macroeconomic cost pressures. On a month-on-month basis, budgets were largely flat, indicating renters’ spending power is holding firm as activity begins to build.
At the same time, rental supply continued to improve, reflecting increased movement in the market. New listings were 4% higher year on year, reinforcing a gradual recovery in available stock. As a result, competitive pressure among renters has eased compared with last year. The number of new renters per instruction fell by 7.6% year on year, consistent with improving supply. Month on month, this metric softened slightly, declining by 5.6% in February versus January. Overall, while seasonal activity is picking up, increased supply is giving renters more choice and reducing competition.
Gareth Atkins, Managing Director of Lettings, said:
“London’s rental market is shifting gears; out of winter’s lull and into something steadier. Supply is building, with February’s new listings up four percent on last year. Rents are holding firm and applicant budgets are nudging upward as renters prepare for spring moves. The early season is rarely dramatic, but that is its strength. In a market that’s building rather than booming, a well-priced, well-presented listing often lets quickly, cleanly and on landlords’ terms. We are now two months away from the implementation of the Renters Rights Act, and our focus is firmly on finalising the necessary paperwork and training our teams to offer the best support.”
Foxtons year-to-date key market indicators
| Supply
New Instructions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | -5% | -12% |
| Central | -23% | -19% |
| East | -1% | -13% |
| North | 16% | -13% |
| South | -10% | -13% |
| West | 29% | 8% |
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