Enquiries on Chestertons' lettings portal jumped by 17% in May compared with a year ago, reversing a 13% fall recorded in April - and the data suggests the Renters' Rights Act is a key driver of the shift.
Under the new legislation, tenants are no longer tied to fixed notice periods, meaning they can begin browsing and serve notice as soon as they find a suitable property.
This has changed search behaviour materially, bringing more active applicants into the market earlier in their decision-making process.
We are also seeing a new influx of landlords to the sector, keen to capitalise on favourable market conditions.
The result is a pipeline of genuine, motivated demand at a time when the sales market is moving in the opposite direction: Chestertons' parallel sales survey recorded a 17% fall in May, with would-be buyers deferring decisions amid ongoing geopolitical and economic uncertainty.
Supply tells an equally compelling story. Available stock at the end of May was almost 17% down year-on-year - a reflection of the broader supply constraints that have defined the London lettings market throughout 2025.
The regulatory environment, including rising taxation and the onset of the Renters' Rights Act, had contributed to supply constraints in recent months; these latest instruction levels suggest some stabilisation.
Pricing dynamics have also shifted under the new legislation.
The number of price reductions fell 36% year-on-year in May - not because landlords are holding firm arbitrarily, but because the Renters’ Rights Act prohibits tenants from offering above the asking price. Landlords are now factoring in negotiation room at the marketing stage, making headline reductions less likely as a result.
Chestertons' data is consistent with broader market trends. Zoopla estimates the supply of rental property across the UK has fallen by 23%. Rightmove data shows annual rental growth in London peaked at 16% in Q3 2022 before slowing to 0.8% by the end of 2025. London rental growth has since picked up to 1.4% in the first quarter of this year.
Katinka Hill, Head of Lettings at Chestertons, said: "The Renters' Rights Act has changed how tenants engage with the market, and we're seeing that reflected in enquiry levels.
“At the same time, landlord confidence appears to be returning, with instruction volumes meaningfully up on last year. The market is demonstrating real resilience through a period of significant regulatory change - and the fundamentals remain strong for London landlords."