Foxtons data unveils key market trends
Rental demand in London remained steady in 2024, according to new data from Foxtons, with November applicant numbers rising 1% compared to the same month in 2023.
Year-to-date figures showed demand levels within 3% of 2023, though regional variations were significant. Central London experienced a 15% increase in applicant demand year-to-date, while West London recorded a 20% decline.
Foxtons noted that despite expectations of increased competition and limited lettings stock, these factors did not significantly impact the market throughout the year. Budgets continued to rise slowly, reaching record highs. By November, the average budget had increased 2% year-on-year to £525, marking a 2% rise in applicant budgets for 2024 compared to 2023.
Listings rose 7% year-to-date as more landlords entered the market, providing renters with greater choice than in previous years. However, the number of new renters per instruction dropped 12% compared to 2023. November saw an average of 15 applicants per instruction, consistent with October figures. Regional differences persisted, with Central London recording a 13% increase in renters per instruction year-to-date, while other parts of the city saw declines.
Rental prices showed signs of stabilisation in late 2024. The average rent in November stood at £541 per week, a 5% drop from October and lower than levels seen in 2022 and 2023. Year-to-date rents in 2024 were 2% below 2023 figures, with houses experiencing the largest decline of 5%. In contrast, one-bedroom flats recorded a 1% increase in rents over the same period.
Renter spending dipped by 1% month-on-month in November, reflecting a seasonal slowdown. For the year overall, renter spending was 1% lower than in 2023, though North London bucked the trend with a 1% month-on-month rise in November.
“Rental demand was steady and persistent in 2024, even as the number of listings increased – reaching 7% higher than 2023 (year to date) by the end of November,” said Gareth Atkins (pictured), managing director of lettings at Foxtons. “So, although this market had more of the traditional seasonality than we’ve seen in recent years, it was still highly competitive throughout, with an average of 15 renters per each new listing year to date.
“As we step into 2025, the lessons of 2024 are clear: success requires not just property, but proactive, intelligent market engagement for buyers, sellers and landlords alike.”
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