London market bats away threat of Renters Rights Act

London market bats away threat of Renters Rights Act

ondon’s rental market appears to be holding firm despite widespread concerns surrounding the introduction of the Renters’ Rights Act. Rather than triggering an immediate slowdown, new figures suggest the capital’s lettings sector remains resilient, with supply levels improving and tenant demand continuing to recover.

According to recent market data from Foxtons, the number of rental properties coming onto the market in London has risen compared with the same period last year. This increase in available homes suggests many landlords are choosing to remain active despite predictions that tougher regulation would lead to a major exodus from the sector.

The Renters’ Rights Act, which came into force earlier this month, introduced some of the most significant reforms to the private rental market in decades. Measures include the abolition of Section 21 “no-fault” evictions, the move to rolling periodic tenancies, restrictions on rent increases, and stronger protections for tenants. While critics warned the legislation could discourage investment and reduce supply, the early signs from London indicate the market is adapting rather than retreating.

Tenant demand in the capital is also showing renewed momentum. Letting agents reported a rise in applicant registrations during April, pointing to increased activity as the market moves into the traditionally busy spring and summer period. Although demand has not yet returned to the exceptionally high levels seen in 2025, competition among renters remains strong enough to keep the market active.

At the same time, conditions are becoming more balanced than they were during the intense post-pandemic rental surge. Higher stock levels mean renters may have slightly more choice, while landlords continue to benefit from stable pricing and consistent occupancy demand. Rents across London have broadly levelled off year-on-year rather than continuing the sharp upward trajectory seen previously.

Industry opinion remains divided on the longer-term impact of the reforms. Some property professionals argue that the new rules create additional financial and legal risks for landlords, especially around possession proceedings and compliance requirements. Others believe the legislation could help professionalise the sector and create more stable tenancies, ultimately improving confidence for both landlords and tenants.

There are also concerns that stricter rules may change landlord behaviour over time. Analysts suggest some landlords may become more selective when choosing tenants, particularly given the reduced flexibility around regaining possession of properties.

Even so, the current evidence from London suggests the market has not reacted with the level of disruption many feared. Instead, the sector appears to be entering a period of adjustment, with landlords, agents, and tenants gradually adapting to a more regulated rental environment while maintaining relatively steady levels of activity.