London's rental sector is demonstrating tentative signs of seasonal uplift following the traditional winter lull, with transaction volumes beginning to recover as the capital enters the spring letting period, Foxtons has reported.

Though tenant enquiries continue to trail the previous year's figures, the trajectory suggests strengthening momentum. This gradual improvement coincides with a sustained expansion in available rental stock throughout the capital, creating more favourable conditions for prospective tenants.

The agency's February dataset reveals a market characterised more by consolidation than rapid expansion. Year-on-year applicant registrations remain subdued, yet have climbed from their winter nadir. Crucially, tenant budgets have held relatively steady, suggesting that the affordability squeeze has not intensified in recent months.

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

Sarah Tonkinson, Managing Director for Institutional PRS and Build to Rent, observed: "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 absorb incoming stock at a steady pace, underpinned by notably resilient rental appetite. The divergence across submarkets is becoming increasingly pronounced week by week. Schemes achieving early traction are those calibrated precisely to the specific pressures and opportunities within their immediate catchment areas.

"For assets nearing market entry, the imperative is clear: refine your positioning within London's evolving rental landscape and underpin your approach with robust intelligence. The properties delivering strongest performance this quarter demonstrate that when foundational strategy is sound, tenant uptake follows with measurable confidence across the capital."

Foxtons year-to-date key market indicators