May was the first full month with the Renters Rights Act in force, but lettings agency Foxtons says it’s changed nothing – at least so far.

It says the season’s momentum in the London lettings market has carried on undeterred. 

Applicant demand climbed sharply month on month, supply held ahead of last year and the market stayed balanced through it all. 

Renter budgets and rent achieved barely moved year on year, which is significant: a market this new absorbing this much activity without straining affordability is a sign of real underlying strength.

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. 

The agency says this points to a more balanced market than last year, with renters benefiting from greater choice while landlords still have access to a strong pool of active applicants. 

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.

Applicant budgets remained stable, with average renter budgets up 0.3% year on year to £548 per week year to date. 

Budgets also increased 2.1% month on month, reflecting a seasonal uplift as renter activity strengthened in May. 

Foxtons says: “This continued stability in renter budgets is important, as it shows that demand is improving without renters materially stretching beyond established affordability levels.”

Supply continued to improve in May, with market new listings up 3.0% year on year and 5.7% month on month.

Sarah Tonkinson, Managing Director Institutional PRS and Build to Rent, comments: “London’s Build To Rent pipeline has grown by nearly 15% this past year, according to the latest sector data. 

“What I’ve seen across Foxtons portfolio squares with that. It is a good market. 

“The demand is there from tenants, but in a competitive market you need to make your offering really clear and work with an agent who has insight across the capital.”