May was the first full month of the Renters’ Rights Act in force, and according to Foxtons’ May 2026 Lettings Market Index, the season’s momentum continued undeterred.
Demand from applicants rose sharply month after month, supply remained higher than last year and the market remained in balance despite everything.
Competition has decreased compared to last year, with the number of new tenants per new assignment falling by 8.6% year-on-year. Month on month, the ratio also decreased by 5.5%, indicating that the increase in available supply is helping to absorb the increase in demand from applicants.
Applicant demand increased in May, with tenant registrations increasing 13.7% month-on-month, while activity continued to increase in the peak summer rental period. Despite this improvement, demand remained 7.1% below last year’s levels, showing that while tenant activity is recovering, it has not returned to the elevated 2025 levels.
Supply continued to improve in May, with new market listings increasing 3.0% year-on-year and 5.7% month-on-month. According to Foxtons, this growth in available stock is helping to create more balanced market conditions, giving tenants greater choice while supporting continued activity in the market. The increase in listings also suggests that landlord confidence remains intact following the implementation of the Tenants’ Rights Act.
Commenting on the latest figures, Foxtons leasing director Gareth Atkins said: “A month on, the Renters’ Rights Act has left the London market largely unchanged. It is pretty much business as usual. Renters saw a slight increase in available stock, with some additional movement due to the initial impact of the new legislation, but within a few weeks the market returned to its normal rhythm.”
He added: “Demand remains stable and prices stable, with tenants focusing on finding the right property rather than chasing discounts. For landlords, it is crucial to focus on the fundamentals – securing the right tenant and a well-maintained property – as these are the factors that will consistently win in a stable market.”