Applicant demand in London's lettings market surged at the start of 2026, with registrations up 93% month on month in January, according to new data from Foxtons.
New renters per new instruction fell 12% year on year, indicating that competitive pressure between renters has eased compared with last year. Market conditions improved month on month; however, with new renters per instruction up 11% compared to December, reflecting a seasonal uplift in activity.
Applicant budgets held steady at an average of £539 per week, leaving affordability broadly unchanged year on year and suggesting resilience in applicant expectations despite wider cost pressures. Budgets rose 2% month on month from December, consistent with the typical seasonal recovery as market momentum resumes following the quieter festive period.
There were 6% more new listings in January 2026 compared with January 2025, giving renters a slightly wider pool of homes to choose from and easing some of the supply pressure seen in recent months. Listings also rose 13% from December, as landlords brought properties back to market following the festive slowdown and new instructions picked up.
Renters used around 2% more of their budget than they did a year ago, a marginal shift that keeps overall spend broadly in line with last year's levels. Month on month, spend rose 1% from December, suggesting limited but stable upward pressure on affordability as market activity picked up.
"January has, as expected, brought a strong return of new applicants - almost double the volume we saw in December," said Gareth Atkins, managing director of lettings. "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."
