Volume doubles as property market sees strong return of new applicants
Foxtons Lettings Market Index – January 2026
Demand rebounded sharply from December, with registrations up 93% month on month and new renters per instruction up 11% compared to December, reflecting a seasonal uplift in activity at the start of the year.
New renters per new instruction fell 12% year on year, indicating that competitive pressure between renters has eased compared with last year.
There were 6% more new listings on the market in January 2026, giving renters a slightly wider pool of homes to choose from and easing some of the supply pressure seen in recent months.
New data from Foxtons, London’s largest lettings agent, shows applicant demand in January, measured by applicant registrations, increased 93% comparing January 2026 to December 2025.
January saw new renters per new instruction fall 12% year on year, indicating that competitive pressure between renters has eased compared with last year. However, market conditions improved month‑on‑month, with new renters per instruction up 11% compared to December, reflecting a seasonal uplift in activity at the start of the year.
Applicant budgets held steady at an average of £539 per week, leaving affordability broadly unchanged year on year and suggesting a degree of resilience in applicant expectations despite wider cost pressures. Budgets increased modestly month on month, rising 2% compared with December. This is consistent with the typical seasonal uplift in activity at the start of the year, as market momentum resumes following the December slowdown.
There were 6% more new listings on the market in January 2026 compared with January 2025, giving renters a slightly wider pool of homes to choose from and easing some of the supply pressure seen in recent months. Listings also rose strongly month on month, increasing by 13% from December 2025. This reflects the typical seasonal recovery in activity, as landlords bring properties back to market following the quieter festive period and new instructions pick up at the start of the year.
In the start of the year, renters have used around 2% more of their budget than they did a year ago, which is a marginal shift that keeps overall spend in-line with last year’s levels. Month on month, spend also rose modestly, increasing by 1% from December, suggesting limited but stable upward pressure on affordability as market activity sees good pickup.
Gareth Atkins, Managing Director of Lettings, said: “January has, as expected, brought a strong return of new applicants – almost double the volume we saw in December. We’ve also seen a steady rise in corporate enquiries, demonstrating that London continues to be a key hub for businesses across the UK, Europe and beyond.”
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