Rents have remained at a record high though
Rental stock has been growing steadily through the year in London, with a 10% increase in supply of rental properties compared to last year, new figures from lettings agent Foxtons have revealed.
With the number of rental properties in the capital increasing and tenant demand returning to normal, the number of new renters fighting for each instruction has gone down year-on-year and month-on-month.
According to Foxtons, there was an average of 19 renters per new instruction across London in September, which was a 19% decrease compared to the previous year and a 17% decrease from the previous month.
However, even with the rental supply growth, prices remained high compared with last year, up 10% year-on-year, with little movement in rental prices since May 2023.
“Supply of rental properties in London has increased 10% compared to this time last year, which is very welcome news,” commented Gareth Atkins, managing director of lettings at Foxtons. “However, we are still behind the levels we’ve seen in 2019, 2021, and of course the post-lockdown market of 2020, so we’re not back to a normal seasonal market just yet.
“Prices continue to be at record levels, and I don’t expect that to change significantly in the short term, given we are currently still registering 18 tenants for every property we have on the market.”
Sarah Tonkinson, managing director of institutional PRS and build to rent at Foxtons, added that with higher stock levels, landlords would need to ensure they were well priced to attract renters.
“As we head into Q4, budgets and prices remain high,” she pointed out. “Renters that move this time of year are often already living in London, know exactly what they want and are experienced at renting in the capital. They will be searching for good value in the properties they choose view and ultimately rent.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, Twitter, and LinkedIn.
