Foxtons says the first full month of the Renters’ Rights Act left London’s lettings market largely unchanged, with applicant demand rising in May while supply stayed ahead of last year and renter budgets barely moved.

The agency’s latest market update said new renter registrations rose 13.7% month on month in May, even though demand remained 7.1% below the same point last year. New listings were up 3% year on year and 5.7% on the month, while average renter budgets were broadly flat year on year at £548 per week.

For landlords, that is an important early read-across from the post-1 May market. It suggests the new regime has not yet produced the sudden demand shock, rent spike or supply collapse that some feared, at least in London, although the market still looks competitive and regionally uneven.

Foxtons says supply gains are easing competition

Foxtons said competition softened compared with last year, with new renters per new instruction down 8.6% year on year and 5.5% lower month on month. In simple terms, renters are still active, but they have a little more choice than they did during the tighter conditions seen in 2025.

That matters for landlords because a more balanced market does not remove demand, but it does raise the standard expected of listings, pricing and response times. Owners who assume any well-located London property will let instantly may find tenants more selective than they were a year ago.

Sarah Tonkinson, managing director of institutional PRS and build to rent at Foxtons, said the London build-to-rent pipeline had grown by nearly 15% over the past year and that the market remained competitive, with demand still there from tenants.

This follows Residential Landlord’s recent reporting on London rents staying elevated in the wider market. Foxtons’ latest numbers suggest that, in the capital at least, the next phase may be less about runaway rental inflation and more about whether improved supply can stop pressure building again over the summer.

That sits alongside Residential Landlord’s coverage of prime London rents and lets agreed in May, which showed stronger activity at the top end of the market. Foxtons is now pointing to a broader middle-market picture where demand is firm but not overheating.

Early RRA calm may not last everywhere

Landlords should be careful not to overread one month of London data. The capital has deeper supply, a large build-to-rent presence and a different tenant mix from many regional markets. A steadier May in London does not mean the Act will prove neutral elsewhere, especially where stock remains tight and compliance costs are rising.

Still, the fresh figures do challenge the idea that the Act has already upended tenant behaviour. The better reading for now is that the legal change has arrived into a market that was already adjusting, and the bigger effects may show later in pricing, management choice and portfolio strategy.

Foxtons’ full market commentary is available on the agency’s website.

Opinion

Landlords should not confuse a calm first month with a settled long-term market. London has absorbed the first phase of the Act better than many expected, but the real test will come when compliance burdens, pricing limits and tenant expectations feed through over a longer stretch.