London's rental market has demonstrated a notable upturn in activity, with new data revealing increases in both available properties and prospective tenants during April 2026. This surge in market movement follows the introduction of the Renters' Rights Act, a significant piece of legislation designed to enhance tenant protections and alter landlord obligations across England.
According to figures released by estate agent Foxtons, new property listings in the capital saw a 3.7% increase year-on-year in April. Concurrently, the number of individuals registering as applicants for rental properties climbed by 9.5% over the same period. This indicates a buoyant spring letting season, suggesting that the regulatory changes implemented by the Renters' Rights Act have not deterred market participation as some had anticipated.
The Renters' Rights Act, which came into effect prior to these figures, introduced several key changes, including the phasing out of 'no-fault' evictions (Section 21 notices) and giving tenants more rights regarding pets and property conditions. While some landlords expressed concerns about increased bureaucracy and potential impacts on their investment returns, the latest data suggests that demand for rental accommodation in London remains strong, and the supply of properties is adapting.
For existing homeowners and first-time buyers, the health of the rental market can have indirect implications. A robust rental sector often reflects ongoing demand for housing in general, which can influence property values. However, the dynamics of the sales market, including mortgage rates and stamp duty considerations, operate on a different footing. Currently, average house prices in London, as reported by sources like Rightmove or Zoopla, typically remain significantly higher than the national average, making entry into homeownership particularly challenging.
The continued activity in the rental market underscores the persistent housing challenge in London, where a large proportion of the population relies on rented accommodation. The increase in applicant registrations highlights the ongoing competition for properties, which can put upward pressure on rental prices, despite the new legislative protections designed to offer tenants greater security and fairness. Landlords, meanwhile, appear to be adjusting to the new regulatory landscape, continuing to bring properties to market.
Looking ahead, the long-term impact of the Renters' Rights Act on rental prices and landlord behaviour will be closely monitored. While initial data suggests resilience, sustained increases in supply will be crucial to alleviate pressure on tenants, especially as the cost of living continues to be a significant factor for many households across the UK.
Source: Foxtons