The lettings market strengthened last month, with applicant demand continuing to recover and supply remaining ahead of last year, according to Foxtons.
In its April review – the final snapshot of market conditions ahead of Renters’ Rights Act implementation, offering a benchmark for the sector entering the new regulatory framework – the agency, which primarily focusses on London, reported stable affordability conditions and average rents unchanged year on year.
Supply remained above last year’s levels, with new listings up 3.7% annually, indicating sustained landlord participation. However, compared with March, listings fell 6% following the seasonal peak, though overall stock levels remained sufficient to support relatively balanced conditions.
Applicant demand continued its seasonal recovery in April, with registrations rising 9.5% month on month. Despite this, demand remained 6.0% below April last year, suggesting recovery is underway but has not yet returned to prior peak levels.
Competition eased compared with the same period last year, with renters per instruction down 6.5% year on year as supply improved. On a monthly basis, competition increased 15.6%, reflecting a return of activity as the market moves deeper into the spring cycle.
Renters continued to allocate 99% of their budgets to housing costs, unchanged year on year, indicating stable affordability conditions. A marginal 0.1% monthly decline suggests no material change in spending capacity. Overall, the data points to a market with improving activity and steady affordability, supported by higher supply and gradually recovering demand.
Sarah Tonkinson, managing director Institutional PRS and Build to Rent, said: “There is a lot of choice out there for renters right now, and the operators coming out ahead in such a competitive landscape are the ones doing the fundamentals well. Price it right. Show the value clearly. Make the process seamless from first enquiry to move-in and resist the temptation to overengineer it.
“We’re all finding our feet in a new and genuinely exciting chapter for Build to Rent, and patience matters as much as pace. The data in this month’s report tells a clear story: residents are deliberate, informed and ready to commit when the offering stacks up.”
Foxtons year-to-date key market indicators
| Supply
New Instructions (year-on-year) |
Demand
New Renter Registrations (year-on-year) |
|
| All London | 1% | -6% |
| Central | -24% | -16% |
| East | 7% | -7% |
| North | 34% | -3% |
| South | -1% | -8% |
| West | 40% | 17% |
