Renter demand remains below last year’s levels, but performance in March indicates a sustained recovery from the winter slowdown, alongside improving supply, Foxtons data reveals.

Applicant registrations remained below last year’s levels but continued to recover as the market moved into the spring period.

Registrations in March were 10% lower year-on-year, although activity increased month-on-month.

Data shows this uplift reflects typical seasonal patterns, with demand strengthening as renters re-enter the market ahead of the summer period.

While still below last year’s peak levels, Foxtons says the overall trajectory is positive and points to growing confidence among renters.

Rental supply continued to build steadily, with new listings rising 4% year-on-year.

This sustained increase has kept overall supply levels ahead of last year, helping to ease pressure in the market and support a more gradual shift towards balance.

Competitive pressure among renters continued to ease compared with last year. New renters per instruction were down 9.4% year-on-year, reflecting the ongoing improvement in supply.

On a month-on-month basis, the metric softened slightly again, suggesting that while demand increased, higher levels of supply are giving renters more choice.

Renter budgets have remained stable, averaging around £542 per week year-to-date to the end of March, representing a slight increase year-on-year.

Foxtons says this suggests affordability has held up despite broader economic pressures.

On a month-on-month basis, budgets were largely unchanged, reinforcing the view that spending power has remained consistent as activity has picked up.

It notes that this stability continues to support steady market performance.

Foxtons says the market is about to enter a “critical phase” with the Renters’ Rights Act due to come in on 1 May.

Foxtons managing director of lettings Gareth Atkins says: “The Renters’ Rights Act comes into force 1 May, landing in a busy spring market. Between February and March, supply rose 11% while rents remained steady. As competition between landlords builds, pricing matters more than ever.”

“Under RRA, you cannot accept offers above your asking price, so landlords need to be confident that asking prices reflect real demand in their local market. The broader reforms have been known for some time, and we are well prepared to help our clients transition to the new regulations.”