London’s rental market is emerging from its winter lull as new data shows improved supply and early signs of tenant activity picking up ahead of the Renters’ Rights Act implementation in May.
Foxtons’ February 2026 Lettings Market Index reveals that new rental listings rose 4 percent year-on-year, while renter budgets remain stable at an average of £540 per week – up just 1 percent from the same period last year.
Supply improves as competition eases
The data points to a gradual rebalancing of London’s rental market. While applicant registrations remain 12 percent below last year’s levels, the gap is narrowing as spring approaches. Crucially, the number of new renters per instruction has fallen by 7.6 percent year-on-year, suggesting landlords face less intense competition for each available property.
This follows Landlord Knowledge’s recent coverage of landlord exits ahead of the RRA, which highlighted regional supply squeezes. The Foxtons figures suggest London’s rental stock may be stabilising after months of decline.
Gareth Atkins, Managing Director of Lettings at Foxtons, said: “London’s rental market is shifting gears – out of winter’s lull and into something steadier. Supply is building, with February’s new listings up 4 percent on last year. Rents are holding firm and applicant budgets are nudging upward as renters prepare for spring moves.”
Atkins added: “We are now two months away from the implementation of the Renters’ Rights Act, and our focus is firmly on finalising the necessary paperwork and training our teams to offer the best support.”
Regional variation across London
The data reveals significant variation across London’s sub-markets. West London saw the strongest recovery, with new instructions up 29 percent and registrations up 8 percent year-on-year – the only region showing growth in tenant demand.
North London also performed well, with instructions rising 16 percent, though registrations fell 13 percent. By contrast, Central London continues to lag, with new instructions down 23 percent and registrations down 19 percent.
For landlords considering their timing for new listings, the data suggests that well-priced properties let quickly in the current market – even without the frenzied competition of recent years.
What this means for landlords
- If you’re listing in spring: Competition among renters has eased, so realistic pricing and good presentation are more important than ever.
- Watch for: The RRA implementation on 1 May – ensure paperwork and tenancy agreements are compliant before the deadline.
- Bottom line: Supply is recovering but tenant demand remains cautious – landlords who price fairly will let quickly.
Editor’s view
The seasonal uptick is modest but meaningful. For landlords who have weathered the uncertainty of the past year, the message is clear: the market is not collapsing – it is normalising. That shift favours those who approach spring with realistic expectations and compliant paperwork.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 26 March 2026
Sources: Foxtons Group
Related reading: Third of landlords sell up as RRA triggers regional supply squeeze
📘 Renters’ Rights Act: Complete Landlord Guide
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