Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Lettings Market Remains Stable After Renters’ Rights Act Introduction

The UK lettings market remained resilient in May, despite the Renters’ Rights Act being in force for its first full month. According to Foxtons, demand increased, supply improved, and there was little evidence of worsening affordability.

Foxtons reported that applicant demand rose by 13.7% month-on-month as the market entered the peak summer lettings season. Although activity was 7.1% below the levels seen a year ago, the increase suggests that renter demand is recovering.

Competition for available homes eased, with the number of new renters registered per new instruction falling 8.6% year-on-year and down 5.5% compared with April. This indicates that improved supply is helping to absorb rising demand. New listings increased by 3.0% annually and 5.7% month-on-month, giving tenants more choice and contributing to more balanced market conditions.

The rise in available stock also suggests landlord confidence has remained stable following the introduction of the Renters’ Rights Act. Affordability showed little sign of deterioration, with average renter budgets rising by just 0.3% year-on-year to £548 per week, and up 2.1% compared with April, in line with seasonal demand patterns.

Foxtons’ year-to-date key market indicators show variation across London regions. For example, new instructions were up 36% in West London and 27% in North London, while Central London saw an 18% decrease. New renter registrations were down 7% year-on-year across London, with West London being the exception, showing a 17% increase.

The data points to a market that has continued to function smoothly despite the introduction of major legislative reforms, with tenants benefiting from greater choice and landlords continuing to attract strong levels of interest.