Renter demand remains below last year’s levels, admits the London-focussed agency Foxtons.

Its latest market snapshot says activity is picking up, but with supply continuing to improve, renters now have “a much wider choice of homes across a spread of London locations.” 

Renters’ budgets and rent remain broadly stable, suggesting affordability pressures have not materially worsened.

Other areas of recovery included applicant registrations, which remained below last year’s levels, but showed positive signs of picking up, claims the agency. 

Registrations were 12% lower year on year, and 11% lower month on month. Despite the monthly softening, activity continues to be materially higher than the winter low point, indicating that seasonal momentum is building as spring approaches.

Renter budgets remained broadly stable, averaging £540 per week year to date to the end of February, up 1% year on year. 

Foxtons says this suggests affordability has held relatively steady despite ongoing macroeconomic cost pressures. 

On a month-on-month basis, budgets were largely flat, indicating renters’ spending power is holding firm as activity begins to build.

New listings were 4% higher year on year, reinforcing a gradual recovery in available stock. 

As a result, competitive pressure among renters has eased compared with last year. 

The number of new renters per instruction fell by 7.6% year on year, consistent with improving supply. 

Month on month, this metric softened slightly, declining by 5.6% in February versus January. 

Foxtons year-to-date key market indicators