The number of new BTL property instructions in London in February was 19% higher than the same period last year, revealed the latest data from Foxtons.
However, compared to January this year, the number of instructions dropped by 10%.
The data also revealed a 15% fall in applicant demand across London, which, according to Foxtons, indicates a more moderate market compared to last year.
Regionally, North London saw the biggest year-on-year increase in new instructions (37%), closely followed by East London (35%).
The two regions also saw the lowest drop in new renter registrations — 4% in East London and 3% in North London.
The Foxtons research also showed a 2% year-on-year decrease in London rental prices to £561, despite a 3% increase compared to January 2024.
West London is the only region that saw a year-on-year increase, rising from an average of £459 in 2023 to £487 in 2024, year to date.
Gareth Atkins, managing director of lettings at Foxtons, said: "The London lettings market is adjusting as we predicted, with applicant demand down 15% and listings up 19% compared to February last year.
“Landlords must adapt, as simply listing their property is no longer enough to achieve a good return.
“Though applicant numbers remain higher than 2019, we are conducting 23% more viewings in order to secure tenancies.
“Building a competitive pricing strategy and instructing a proactive agent are crucial for a landlord’s success in this evolving market."
