Market continues to build momentum
Foxtons Lettings Market Index – March 2026
Market continues to build momentum, recovering from winter slowdown as supply strengthens
- Lettings market continues to build momentum as we move further into the spring period. While renter demand remains below last year’s levels, March performance shows continued recovery from the winter slowdown.
- Market entering critical period with Renters’ Rights Act coming into force this week.
- Competitive pressure between renters eased further compared with last year. New renters per instruction were down 9.4% year on year, reflecting continued improvement in supply.
The lettings market is continuing to gain momentum as we move further into the spring period. While renter demand remains below last year’s levels, performance in March indicates a sustained recovery from the winter slowdown. At the same time, supply is improving, offering London renters greater choice. With the Renters’ Rights Act now just days away, the market is entering a critical phase. Current trends point to a gradual shift towards more balanced conditions, as rising supply helps ease pressure on renters while demand continues to rebuild steadily.
Applicant registrations remained below last year’s levels but continued to recover as the market moved into the spring period. Registrations in March were 10% lower year-on-year, although activity increased month-on-month. This uplift reflects typical seasonal patterns, with demand strengthening as renters re-enter the market ahead of the summer period. While still below last year’s peak levels, the overall trajectory is positive and points to growing confidence among renters.
Rental supply continued to build steadily, with new listings rising 4% year-on-year. This sustained increase has kept overall supply levels ahead of last year, helping to ease pressure in the market and support a more gradual shift towards balance.
Competitive pressure among renters continued to ease compared with last year. New renters per instruction were down 9.4% year-on-year, reflecting the ongoing improvement in supply. On a month-on-month basis, the metric softened slightly again, suggesting that while demand increased, higher levels of supply are giving renters more choice.
Renter budgets have remained stable, averaging around £542 per week year-to-date to the end of March, representing a slight increase year-on-year. This suggests affordability has held up despite broader economic pressures. On a month-on-month basis, budgets were largely unchanged, reinforcing the view that spending power has remained consistent as activity has picked up. This stability continues to support steady market performance.
Gareth Atkins, Managing Director of Lettings, said: “The Renters’ Rights Act comes into force 1 May, landing in a busy spring market. Between February and March, supply rose 11% while rents remained steady. As competition between landlords builds, pricing matters more than ever. Under RRA, you cannot accept offers above your asking price, so landlords need to be confident that asking prices reflect real demand in their local market. The broader reforms have been known for some time, and we are well prepared to help our clients transition to the new regulations. For well-presented homes priced sensibly, we expect activity to remain steady, with tenants willing to commit longer-term where they see value.”
Foxtons year-to-date key market indicators
| Supply
New Instructions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | -1% | -10% |
| Central | -23% | -17% |
| East | 7% | -11% |
| North | 33% | -11% |
| South | -4% | -11% |
| West | 28% | 10% |
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