Activity in the rental market increased in April, with applicant demand recovering and supply higher than last year, while affordability figures remained stable and rents held steady year on year, the latest rental data from Foxtons shows.
April provides the latest snapshot of market conditions prior to the implementation of the Renters’ Rights Act.
Foxtons said the data indicated the market was already moving towards more balanced conditions, with improved supply easing competitive pressure as demand continues to recover.
Offers remained higher than last year, with new listings up 3.7% year-over-year.
Compared to March, quotations fell 6.0% from the early spring peak, but inventory levels remained sufficient to support more balanced conditions.
Applicant demand continued its seasonal recovery in April, with registrations increasing 9.5% month on month.
Even with this improvement, demand ended April 6.0% below last year’s levels, showing that while momentum is building, it has yet to return to the elevated activity of 2025.
Competition eased in April compared to last year, with the number of tenants per instruction falling 6.5% year-over-year as supply improved.
There was a 15.6% increase month-on-month, showing that demand is starting to accelerate again, indicating a market that is more balanced but still active.
Tenants continued to spend 99% of their budget, unchanged year on year and pointing to consistent affordability conditions.
The slight decline of 0.1% month-on-month indicates that tenants did not go beyond the established limits.
Foxtons says this balance between stable budgets and rising activity points to a market that is growing without putting additional pressure on affordability.
Gareth Atkins, rental director at Foxtons, said: “The Renters’ Rights Act has entered a busy season, with momentum unchecked by the new legislation. Applicants are up dramatically, supply is strong and budgets are holding up.”
“The more interesting shift is behavioral: tenants move earlier and act more decisively, but they are also more critical about where they spend their time.”
“A property that would have generated viewings two years ago alone should now earn them. The market rewards landlords who treat the launch of a lease with the same care as the launch of a sale: clear positioning, accurate pricing and a property that is truly ready on day one.”