Enquiries from prospective tenants rose by 13% year-on-year, according to the latest monthly analysis from London property specialist Chestertons.
The increase marks a notable shift in tenant activity following a period of weaker demand. Year-on-year enquiries had fallen in each of the five months leading up to the Act's introduction on 1 May, before rising by 17% in May and 10% in June.
Demand then fell by 7% year-on-year in July, but recovered sharply in August.
At the same time, new landlord instructions increased by around 6% year-on-year, suggesting that confidence among landlords is beginning to return as the rental sector adjusts to the new rules.
The Renters’ Rights Act prevents landlords and agents from inviting, encouraging or accepting offers above the advertised rent. Some landlords had tested higher asking rents ahead of its introduction, which contributed to a temporary slowdown in tenant activity during July.
“As the report states, August brought an increase in activity across London's rental market, which doesn't surprise me and is in line with usual seasonal trends. We also expect this momentum to continue into September now that schools have returned and people are back from holiday,” said Katinka Hill, Head of Lettings at Chestertons.
“Achieved rental prices are holding firm, which is a positive sign. A notable trend we've seen since the Renters' Rights Act took effect on 1 May is that tenants are taking longer to make decisions, weighing up their options more carefully. This is because they have increased flexibility to move, and there are plenty of quality homes to choose from.’’
