Sentiment shows signs of improvement across London, with a 12% increase in tenant demand in April compared with March, Foxtons data shows.

Figures show that while there was a 10% fall in demand comparing 2024 to 2023 year to date, April this year saw a 6% increase in demand compared to April last year.

The seasonal upturn in the lettings market also contributed to higher demand from tenants.

An increase of supply in Q1 had slowed competition. Foxtons says renters have now noticed this and are seizing the opportunity to make a move.

The average rental price is in line with 2023, with the average rental prices in London increasing 3% in April this year and the average price across all of London currently sitting at £555.

In addition, since the beginning of 2024 there has been an 11% increase in new market listings, but last month had the same number of new listings as April last year.

Foxtons says it expects prices to continue to track closely over the next quarter.

New renters per new instruction has remained constant at an average of 14 per instruction throughout 2024 so far, down 22% compared to 2023 year to date.

South and West London showed the highest number of new renters per new instructions with an average of 19 and 18 respectively.

Applicant budgets remain higher in 2024 than any other year, with a 3% increase year to date compared to 2023.

As demand is increasing seasonally, applicant budgets are following a similar trend.

West London has the lowest average applicant budget at £481, a 4% year-on-year increase from 2023.

Central London also continues to command the highest applicant budgets across all of London, averaging £580.

Foxtons managing director of lettings Gareth Atkins says: “The first quarter of 2024 saw a significant influx of new properties compared with 2023 and as such, less renters per property – or in broad terms, competition.”

“One of the knock-on effects of that was a stagnation of average prices, which we predicted in January. Early data from Q2 has seen not only that supply slowed but also the return of 2023 levels of applicants which, if it continues, would indicate a stronger rental market.”

Foxtons managing director of institutional private rented sector and built to rent adds: “The spring market has definitely sprung into action, and registrations for Build to Rent are coming in thick and fast. Foxtons’ Build to Rent portfolio is already seeing a significant increase in under offer and exchanged leases compared to the same period last year.”

“This time of year applicants commerce their searches in earnest buoyed by the lighter evenings and better weather. Students want to secure a lease for September before they leave for summer.”