London rental demand surges in January but competition eases year-on-year
Foxtons data shows applicant registrations rose 93% month on month in January, while new renters per instruction fell 12% compared with a year earlier.
Demand in London’s rental market rebounded sharply in January, with applicant registrations rising 93% compared with December, according to new data from Foxtons.
Measured year on year, however, new renters per new instruction fell 12%, suggesting competitive pressure between renters has eased compared with the same point last year.
Month-on-month, new renters per instruction increased 11%, reflecting the typical seasonal uplift at the start of the year.
Applicant budgets held steady at an average of £539 per week, broadly unchanged year-on-year.
Budgets rose 2% compared with December, in line with the seasonal recovery in activity following the festive slowdown.
Renters used around 2% more of their budget than a year earlier, while month-on-month spend rose 1%, indicating limited but stable affordability pressure.
Supply also improved. There were 6% more new listings in January 2026 compared with January 2025, and listings rose 13% compared with December.
Foxtons said this gave renters a slightly wider pool of homes and eased some of the supply pressure seen in recent months.
Gareth Atkins, managing director of lettings at Foxtons, said: “January has, as expected, brought a strong return of new applicants – almost double the volume we saw in December.
“We’ve also seen a steady rise in corporate enquiries, demonstrating that London continues to be a key hub for businesses across the UK, Europe and beyond.”
Year-to-date figures show supply and demand remain below last year’s levels across most regions of London.
“Across all London areas, new instructions were down 10% year on year, while new renter registrations fell 16%.
“Central London recorded a 30% drop in new instructions and an 18% fall in demand, while the West was the only region to post strong supply growth, with new instructions up 23% year on year and demand down 6%.
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