London rental market cools as demand slows

Competition in the rental market eased in September with new market listings down in London, according to a new report.

Foxtons lettings market index reveals applicant registrations fell 21.1% from August to September as the busy summer period came to a close.

The news comes as the Office for National Statistics (ONS) reveals landlords saw average UK private rents rise by £52 a month over the year to September.

New listings down

According to the data, following the August peak, new renters per new instruction fell 16.4% month on month to 20. However, the ratio stood 2.1% above the comparable period last year.

Market new listings were 2.8% above the comparable period last year, while September volumes were virtually unchanged from August, edging down 0.1%.

The data also reveals renters spent an average of 98% of their stated budget on rent year to date, up 0.6% on the comparable period last year. September’s figure was 99%, a 0.3% increase from August.

The average rent achieved year to date was up 0.8% to £590 per week. In September, it reached £610 per week, a 0.9% increase from August.

Entering a new kind of market

Sarah Tonkinson, managing director of institutional PRS and Build to Rent, said: “London lettings is entering a new kind of market. Applicants are still moving, but they’re making more considered choices, so understanding what’s prompting a move and matching each property to the right audience really counts.

“There are 18 renters per instruction, up 2% year on year, and average budgets remain steady at £562 a week.

“There’s plenty to build on: rents achieved are up 1% year on year, reaching £610 per week in September, and properties are letting at 98% of budget. Strong marketing, a clear story and an excellent resident experience are what turn applicant interest into great results.”