London's rental sector is demonstrating tentative signs of seasonal uplift following the traditional winter lull, with transaction volumes beginning to recover as the spring letting season takes hold, according to latest data from Foxtons.

Though tenant enquiries continue to track below the corresponding period in 2025, the trajectory suggests improving market sentiment. This modest recovery is being underpinned by a sustained expansion in available rental stock throughout the capital, creating more favourable conditions for prospective tenants.

The February dataset reveals a market entering a phase of consolidation rather than rapid expansion. Year-on-year comparisons show applicant registrations remain subdued, yet the sequential improvement from winter troughs is notable. Crucially, tenant budget parameters have held relatively steady, suggesting that the acute affordability constraints that characterised recent years have not intensified further.

Simultaneously, the supply pipeline continues its upward trajectory, progressively alleviating competitive pressure. Fresh property listings have exceeded last year's volumes, whilst the ratio of prospective tenants per available instruction has contracted. This shift is providing renters with enhanced selection and points toward a more equilibrated market dynamic as seasonal activity resumes.

Sarah Tonkinson, MD institutional PRS and Build to Rent, commented: "For those monitoring London's Build to Rent sector with the granularity we apply, the gathering momentum through early 2026 is palpable. The capital continues to demonstrate robust absorption capacity for new rental stock, sustained by particularly resilient underlying demand. The differentiation between submarkets is becoming increasingly pronounced week by week. The schemes achieving breakthrough performance now are those calibrated precisely to the specific dynamics and opportunities within their immediate catchment areas."

"For assets approaching market entry, the critical focus should centre on strategic positioning within London's evolving rental landscape, supported by rigorous data analytics. The properties delivering strongest performance this quarter validate that when foundational strategy is sound, tenant take-up follows with measurable confidence across the capital."

Foxtons year-to-date key market indicators