London Rental Enquiries Jump 13% as Landlord Supply Returns

Tenant enquiries in London rose 13% year-on-year in August, marking a sharp rebound after a dip in July. This increase coincided with a 6% rise in new landlord instructions as more owners returned to the market. The data from Chestertons indicates that supply and demand are both accelerating simultaneously.

This activity spike occurred three months after the Renters' Rights Act came into force on 1 May. Enquiries had fallen during the five months prior to the legislation. However, May saw a 17% jump, followed by 10% growth in June, before the July slump. August figures suggest the market is stabilizing and regaining momentum.

Rental prices remain stable despite increased supply

Achieved rental prices are holding firm, indicating that increased supply has not triggered a price drop. Katinka Hill, head of lettings at Chestertons, noted that tenants are taking longer to decide. This shift is driven by greater flexibility to move and a wider selection of quality homes.

Hill expects this momentum to continue into September as schools reopen and people return from holidays. The current trend aligns with usual seasonal patterns for the rental sector. The sustained activity suggests that the initial uncertainty around the new legislation is fading.

Sales market confidence builds ahead of budget

Vendor instructions in the sales market increased by 14% year-on-year, signaling growing confidence among sellers. Buyer enquiries are also improving, with more homeowners bringing properties to market ahead of the autumn season. This dual increase in supply and demand activity points to a more balanced market.

Adam Jennings, Head of Residential at Chestertons, stated that less media speculation about tax changes is helping. This contrasts with the run-up to the November 2025 Budget, where rumors impacted activity. Greater clarity on the economic outlook is now supporting decision-making for both buyers and sellers.

Reduced uncertainty supports market trajectory

Jennings noted that months of rumors about property taxes had previously suppressed activity levels in the capital. The current environment offers a clearer picture for stakeholders. This reduced uncertainty is a key factor in the renewed optimism across the network.

Combined with improving consumer sentiment, the market shows positive signs for the coming months. The data reported by Property118 highlights a recovery in confidence. The alignment of rental and sales metrics suggests a broader stabilization in the London property sector.