Continued season momentum with applicant demand up for lettings
Foxtons Lettings Market Index – May 2026
Continued season momentum with applicant demand up month on month and supply increasing.
- The season’s momentum carried on undeterred. Applicant demand climbed sharply month on month, supply held ahead of last year and the market stayed balanced through it all.
- Competition eased compared with last year, with new renters per new instruction down 8.6% year on year. Month on month, the ratio also declined by 5.5%, indicating that the increase in available supply is helping to absorb the rise in applicant demand.
- Supply continued to improve in May, with market new listings up 3.0% year on year and 5.7% month on month.
May was the first full month with the Renters’ Rights Act in force, and the most remarkable thing is how little changed. The season’s momentum carried on undeterred. Applicant demand climbed sharply month on month, supply held ahead of last year and the market stayed balanced through it all. Renter budgets and rent achieved barely moved year on year, which is significant: a market this new absorbing this much activity without straining affordability is a sign of real underlying strength.
Competition eased compared with last year, with new renters per new instruction down 8.6% year on year. Month on month, the ratio also declined by 5.5%, indicating that the increase in available supply is helping to absorb the rise in applicant demand. This points to a more balanced market than last year, with renters benefiting from greater choice while landlords still have access to a strong pool of active applicants.
Applicant demand strengthened in May, with renter registrations increasing 13.7% month-on-month as activity continued to build into the peak summer lettings period. Despite this improvement, demand remained 7.1% below last year’s levels, showing that while renter activity is recovering, it has not returned to the heightened levels seen in 2025.
Applicant budgets remained stable, with average renter budgets up 0.3% year on year to £548 per week year to date. Budgets also increased 2.1% month on month, reflecting a seasonal uplift as renter activity strengthened in May. This continued stability in renter budgets is important, as it shows that demand is improving without renters materially stretching beyond established affordability levels.
Supply continued to improve in May, with market new listings up 3.0% year on year and 5.7% month on month. This growth in available stock is helping to create more balanced market conditions, giving renters greater choice while supporting continued activity across the market. The increase in listings also suggests that landlord confidence remains intact following the implementation of the Renters’ Rights Act.
Gareth Atkins, Managing Director of Lettings, said:
“A month in, the Renters’ Rights Act has left the London market largely unchanged. 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.”
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