May was the first full month with the Renters’ Rights Act in force, and the season’s momentum carried on undeterred, according to the May 2026 Lettings Market Index from Foxtons.
Applicant demand climbed sharply month on month, supply held ahead of last year and the market stayed balanced through it all.
Competition eased compared with last year, with new renters per new instruction down 8.6% year on year. Month on month, the ratio also declined by 5.5%, indicating that the increase in available supply is helping to absorb the rise in applicant demand.
Applicant demand strengthened in May, with renter registrations increasing 13.7% month-on-month as activity continued to build into the peak summer lettings period. Despite this improvement, demand remained 7.1% below last year’s levels, showing that while renter activity is recovering, it has not returned to the heightened levels seen in 2025.
Supply continued to improve in May, with market new listings up 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 renters greater choice while supporting continued activity across the market. The increase in listings also suggests that landlord confidence remains intact following the implementation of the Renters’ Rights Act.
Commenting on the latest figures Foxtons managing director of lettings Gareth Atkins said: “A month in, the Renters’ Rights Act has left the London market largely unchanged. It is very much business as usual. Tenants saw a slight increase in available stock, with some additional movement driven by the initial impact of the new legislation, but within a couple of weeks the market settled back into its normal rhythm.”
He added: “Demand remains steady and pricing stable, with renters focusing on finding the right property rather than chasing discounts. For landlords, the key is to focus on the fundamentals: securing the right tenant and a well-maintained property, as these are the factors that will consistently win out in a stable market.”
