Foxtons says London’s PRS is returning to ‘normal’

The London lettings market is returning to a ‘normalised’ with a rise in property listings, according to Foxtons.

The firm’s data shows a big rise in property listings in May compared to April (36%) – which is 10% higher than last year.

This growth in available properties has reduced competition among renters, allowing them to be more selective and reducing the need to register with multiple agents.

Tenant demand is also on the rise, with a 20% increase from April, although it remains slightly below pre-pandemic levels.

Rented home supply is growing

Gareth Atkins, the managing director of lettings at Foxtons, said: “As we move into peak summer lettings season, supply is growing.

“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.”

He says the General Election announcement and the binning of the Renters (Reform) Bill means there’s no immediate change to fixed term tenancies, but he predicts the Bill will return under a new government.

Rise in overall tenant demand

Despite the rise in overall tenant demand, the number of potential renters per new property has fallen by 21% due to the big rise in listings.

However, this hasn’t impacted rent prices with the average rent in May being £577 per week, down slightly from £606 in May 2023.

Rents have risen by 2% over the year.

Foxtons says that more than 20% of new instructions were within Westminster and Tower Hamlets, with Westminster having 11% of new instructions alone.