Rent year-to-date is lower compared to last year
An increase in property listings in May is helping to create a more normalised market, offering relief to renters, landlords, and agents, according to new data from Foxtons.
Last month, there was a significant uptick in properties coming to market compared to the previous two years, reducing competition.
The data also shows an increase in applicant demand, aligning with seasonal norms. However, it is slightly lower than in previous years because renters have more choices and less competition for properties, reducing the need to register with multiple agents.
The latest Foxtons Lettings Market Index also showed listings increased by 36% in May compared to April. Year-to-date, listings in 2024 are 10% higher than in 2023. Over 20% of new instructions year-to-date were within Westminster and Tower Hamlets, with Westminster accounting for 11% of new instructions alone.
Applicant demand experienced a seasonal rise, with a 20% increase from April. In Q2, applicant demand has been much closer to the trends observed in Q2 2023. It is expected that volumes of applicant demand through the summer months will remain similar to last year.
Despite the increase in applicant demand, there was a 21% reduction in new renters per instruction due to the larger number of new instructions entering the market in 2024. As peak lettings season approaches, Foxtons reported a 5% increase month-on-month in May, with East London experiencing a 26% month-on-month increase.
As a result of less competition for properties, average rent in May 2024 was slightly behind May 2023. The average rent was £577 per week in May 2024, compared to £606 in May 2023. There was a marginal 2% decrease in rent year-to-date compared to 2023.
“As we move in to peak summer lettings season, supply is growing,” said Gareth Atkins (pictured), managing director of lettings at Foxtons. “Renter demand is also growing, mirroring 2023’s Q2 trends with a 20% month-on-month increase. If demand follows last year’s trends through summer, Q3 will be a very busy market.
“The announcement of the general election at the same time has resulted in the shelving of the Renters Reform Bill. This means there will be no immediate changes to fixed term tenancies or any of the other provisions within the bill. Renters Reform is likely to be reintroduced under a new government but for now, it’s business as usual.”
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